ISLAMABAD: Software industry, All Pakistan Textile Mills Association (APTMA) and stationery sector, Friday, informed the Senate Standing Committee on Finance that they are unable to run their businesses in these extraordinary circumstances due to heavy taxation.

The Senate Standing Committee on Finance and Revenue convened for the second consecutive day to deliberate and finalise recommendations on the Finance Bill, 2024.

During the third round of discussions, particular attention was given to the sales tax provisions.

The meeting, held at the Parliament House, was presided over by Senator Saleem Mandviwalla.

On Friday, the Senate Standing Committee on Finance and Revenue was briefed by representatives of the Pakistan Software Association, APTMA, and Stationery Association about the problems they confront due to high taxation, making it difficult for them to run their businesses in these extraordinary circumstances.

The committee recommended that the chairman of the FBR discuss the matter with the representatives of these associations and subsequently brief the committee.

The committee also expressed the view that stationary items should be exempted from sales tax, considering Pakistan has 22.5 million children aged 5 to 16 out of schools.

Additionally, the committee decided to defer deliberations on sales tax until the next meeting.

Moreover, the committee rejected the amendment concerning the “Abandoned Properties Organization” and stated that the Finance Bill should be limited solely to financial matters.

The amended budget for 2024 aims to enhance transparency within the system and combat tax fraud.

It was emphasized that any business entity found with five receipts per week without a Point of Sale (POS) system will face closure.

Additionally, it was proposed that the Federal Board of Revenue (FBR) oversee the licensing of POS software companies.

In response to queries regarding past fraud incidents involving POS systems, the chairman of the FBR clarified that the fraudulent activities were identified subsequent to their occurrence and was later transpired that some sales record was removed from the POS.

He further explained that the new integrated licensing system, managed by a third-party integrated company, will provide comprehensive oversight, thereby, enhancing online sales visibility.

The committee chairman also advocated for leniency in the case of sales returns, suggesting that penalties should be preceded by warnings.

Furthermore, it was disclosed that a penalty of Rs0.5 million will be imposed for non-compliance with POS requirements. Through the integrated licensing system, the FBR now possesses a dashboard to monitor the operational status of POS machines across various retail outlets.

Retailers found guilty of tax evasion will face blacklisting and retain the right to appeal to the chief commissioner.

Furthermore, committee members proposed an amendment to revise the wording from “any” to “full” concerning the amount of payment received by suppliers.

In attendance were senators, Mohsin Aziz, Sherry Rehman, Farooq Hamid Naek, Anusha Rahman Ahmad Khan, Shahzaib Durrani, Manzoor Ahmad Kakar, chairman FBR and other senior officials of relevant departments were also in attendance.

Copyright Business Recorder, 2024