Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar has urged the Federal board of Revenue (FBR) for S.R.O 1842(1) 2023 Amendment, saying that retailers seek tax relief amidst recent policy changes.
The LCCI spokesman told media here Sunday that in a bid to address the concerns raised by the LCCI members, President Kashif Anwar has penned a letter to FBR Chairman Malik Amjed Zubair Tiwana, urging for amendments in S.R.O 1842(1)2023 dated 21-12-2023. The focal point of contention revolves around a recent notification amending rule 150ZEA of the sales tax rules, 2006, specifically targeting Tier-1 retailers under section 2(43A) (g) of the sales tax act, 1990.
Under the revised rule, retailers with a deductible withholding tax under section 236 H of the Income Tax Ordinance 2001 exceeding Rs. 100,000/- in the last 12 months are now obligated to integrate with the point of sale (POS) system. Kashif Anwar pointed out that this amendment would affect retailers across 21 different sectors/products, citing their lack of expertise, technical know-how, and financial resources.
The crux of the matter lies in the additional burdens on retailers. He said that in the previous budget, the condition of 1000 sq ft was withdrawn because of the hard work of the business community and now this 236 H has been imposed instead of enhancing the turnover of retailers and reducing the tax rate by facilitating more and more unregistered persons to come into tax net.
President LCCI highlighted that compliance with the new regulations would necessitate hiring professional accountants for record maintenance, filing statements, reporting to the Federal Board of Revenue (FBR).
Moreover, the installation of POS systems would further escalate costs for these already economically challenged retailers.
He said that it is not feasible to come into sales tax regime overnight as this will create problems for withholding retailers.
He noted that this could negatively impact those who are already tax-compliant and documented, potentially discouraging the documented sector, and these overnight changes may result in refrain the unregistered retailers to come into the tax net.
The LCCI President expressed deep concern over the potential ramifications, asserting that these burdens could lead to severe challenges for retailers. Compliance difficulties may result in penalties, exacerbating their financial strain.
Kashif Anwar stressed the urgency of the matter, calling for immediate intervention by Chairman FBR to address the predicament.—APP
