LCCI welcomes legislative initiative aimed at tackling tax evasion

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has welcomed the legislative initiative by Federal Finance Minister Muhammad Aurengzeb aimed at tackling tax evasion through the Tax Law Amendment Bill 2024.

“LCCI is optimistic that this would reduce burden on the honest taxpayers besides accelerating the economic growth,” said LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said in a statement.

The LCCI office-bearers welcomed the intent behind the legislation. LCCI President Mian Abuzar Shad said that this legislation is a step in the right direction to improve tax compliance and reduce evasion. However, the government must ensure that its implementation does not create hurdles for genuine businesses, particularly those operating in the informal sector and looking to transition into the formal economy. He demanded for a balanced approach to ensure compliance while supporting economic growth.

He also suggested that the government prioritize educating businesses about the benefits of compliance, emphasizing the importance of a collaborative approach with stakeholders.

Senior Vice President Engineer Khalid Usman said “the stringent measures proposed under the bill require a parallel effort to simplify tax filing processes and provide businesses, especially SMEs, with the necessary tools to comply. A phased implementation plan can help minimize disruptions and build confidence among the business community.”

Vice President Shahid Nazir Chaudhry said the business community plays a vital role in driving Pakistan’s economy and any policy that affects them must be framed with their input. “We strongly recommend a transparent grievance redressal mechanism and frequent consultations with chambers of commerce to address concerns effectively.”

To maximize the effectiveness of the Tax Law Bill 2024, the LCCI office-bearers suggested that workshops and awareness drives should be conducted to familiarize businesses with compliance requirements and benefits.

They said the government should develop user-friendly digital platforms for tax registration and return filing. The restrictions should be ensured gradually to allow businesses to adapt.

They added that the government should offer reduced penalties or exemptions for businesses that voluntarily register within a specified timeframe.

Copyright Business Recorder, 2024