The Lahore Chamber of Commerce and Industry (LCCI) on Tuesday urged the Federal Board of Revenue (FBR) to immediately withdraw largely opposed, controversial and impractical SRO 191(1) 2012 pertaining to mandatory requirement of CNIC number on all transactions.
LCCI President Irfan Qaiser Sheikh stated this after having a meeting with leaders of a number of trade and industrial associations, including Anjuman-e-Tajiran Pakistan, Qoumi Tajir Ittehad, Lahore Township Industrial Association, Ferozepur Road Industrial Association, Badami Bagh Auto Market Association, Katarbund Road Industrial Association, Kahna Kacha Industrial Association, Township Traders Association who called on him and assured their full backing for launching countrywide protest against the SRO.LCCI President informed the trade and industry leaders that he had already conveyed a strong resentment of the business community over this controversial SRO to the Chairman FBR and Member Sales Tax during his meeting with them.
Sheikh said that the implementation of this SRO would not only result in closure of businesses but would also cause innumerable layoffs as both the trade and industry were passing through very difficult, challenging and crucial times due to unavailability of gas to the industry. In the last 15 days, loadshedding of over 12 to 13 hours a day is being carried out which has brought the industrial activities to a complete halt.
He said that the FBR should take measures to bring the untaxed sectors of the economy into the tax net instead of squeezing those who were already in the tax net and paying all their dues. He said that the FBR which was established with an objective to facilitate the trade and industry has been unfortunately turned into a money making machine and the people sitting at the helm are not only unaware about the ground realities but are least concerned about the problems and the day-to-day challenges being faced by the businessmen.
LCCI President said that at a time when both the trade and industry were looking for a relief package to run their businesses, they are being pushed to the wall by issuing SROs like 191(I) 2012. He said that the LCCI understood well that a quantum jump in Tax-to-GDP ratio was in dire need but it also believed that this objective could only be achieved through facilitation of existing businesses instead of arm-twisting.
Sheikh said that FBR and LCCI were not on the same page on the issue as the FBR wanted documentation of the economy through this controversial SRO while the LCCI believed that all the untaxed sectors should be taxed and enforcement of professional tax needed to be strengthened. The LCCI is firm on its stand and calls for early withdrawal of the SRO 191(I) 2012 as it is unrealistic and unjustified and any attempt to implement it would be resisted.
He said that the FBR should avoid implementing the SRO without the consultation of the business community for being the main stakeholders. He said that the SRO would have devastating effect on the businesses in Pakistan as the compulsory requirement of NTN or CNIC number of each and every purchaser or seller was practically almost impossible.
The LCCI felt that the FBR was shifting its burden of monitoring and tracking of the tax system towards the business community which was unjust and unethical. "If the FBR was interested in broadening tax net, it must bring the agriculture sector into the tax net instead of creating troubles for the registered persons who were already doing businesses in the presence of multiple internal and external challenges," he said.
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