LAHORE: President of the Lahore Chamber of Commerce and Industry (LCCI) Kashif Anwar has said that no new laws should be made for existing taxpayers who are performing their national duty. New laws must be made for those who are out of tax net.
He was speaking at a meeting with the Chief Commissioner Inland Revenue Amjad Farooq at the Lahore Chamber of Commerce and Industry. LCCI Senior Vice President Zafar Mahmood Chaudhry, Commissioners Inland Revenue Sahibzada Umer Razzaq, Nauman Malik, LCCI Executive Committee Members and others were also present.
Kashif Anwar said that the business community is facing many economic challenges. In these circumstances, there is a need to ensure facilities and relief for the existing taxpayers. He said that the SROs 457(I)/2024 Tajir Dost Scheme, 350(I)/2024 and 1842(I)/2024 issued by the government recently have created difficulties for the business community.
Talking about SRO 457(I)/2024, LCCI President said that all traders and shopkeepers will have to submit monthly advance tax under the Tajir Dost scheme. Most shopkeepers rely on lawyers for tax filing, which will increase their burden and increase the cost of doing business due to legal fees and fines. He suggested that advance tax must be collected annually or bi-annually instead of monthly.
He said that under this scheme, the tax will be calculated according to the annual rental value. He said that imposing tax according to rental value or area is not right because these two factors have nothing to do with turnover.
Kashif Anwar said that every retailer has a commercial electricity meter. Advance tax must be collected through electricity bills based on actual consumption which should be adjusted in the annual income tax return.
They should be given other incentives including exemption from audit and reduction in tax rate which will encourage retailers and shopkeepers to get themselve registered under the Tajir Dost Scheme.
Further, to ensure consistency and continuity of policies, the time frame of the scheme must be at least five years.
LCCI President said that according to SRO 1842(I)/2024, under Section 236H of Income Tax Ordinance 2001, the retailer whose last/previous 12 deductible withholding tax is more than one lakh rupees is bound to integrate with the POS system. He suggested that this limit of withholding tax for retailers must be increased to five lakh rupees. One-shop retailers must be exempted from integration into POS.
Kashif Anwar added that the Lahore Chamber supports the government’s efforts to promote the document economy and widen the tax net. He said that stakeholders taking on board while formulating policies.
Chief Commissioner Inland Revenue Amjad Farooq said that an application has been developed for Tajir Dost scheme in which the registration process is very easy. Currently, all our teams are in the field and all resources are being devoted to make this campaign a success. He said that teams of officers are going door to door and explaining traders about the application.
He said that the first step is registration. This scheme will be legislated by June 30. No liability will be imposed on those who are registering at this time, while anyone who registers in this scheme will get twenty five percent discount in advance tax. Amnesty under this scheme is not clear yet.
He said that many things will be cleared when the bill will be passed by June 30. There is no need to get registered again who are already in the tax net. Feedback from trade associations has been taken before implementing this scheme and efforts are being made to ensure that there is no element of harassment.
He said that the valuation will be on FBR rate. He said that provision of monthly advance tax submission will be reviewed and input of Lahore Chamber will be forwarded and he will try to make it a part of the bill. He said that a large number of voluntary returns have been filed this year in RTO Lahore.
Copyright Business Recorder, 2024