The Karachi Chamber of Commerce and Industry (KCCI) President, Muhammad Jawed Bilwani, has called for an immediate suspension of the affidavit requirement tied to sales tax returns, citing the burden it imposes on the business community. He emphasized that this demand remains until proper consultations are held and more effective measures are in place. Bilwani highlighted that, following KCCI’s request, the Federal Board of Revenue (FBR) had suspended this requirement for September 2024 and indicated plans to gather input from stakeholders on solutions to tackle fraudulent sales tax claims.
However, he criticized the FBR for failing to follow through on these consultations, adding that the affidavit requirement only intensifies existing pressures on businesses and creates a climate of intimidation.
He explained that the affidavit places unrealistic expectations on CFOs and taxpayers, who cannot feasibly guarantee the authenticity of invoices across the supply chain. “Taxpayers only have access to limited information about suppliers’ status via FBR’s site,” Bilwani stated, noting that auditing and compliance verification fall under FBR’s authority, not individual taxpayers. Bilwani warned that requiring CFOs to submit affidavits subjects them to potential severe legal consequences, including imprisonment of up to ten years under Section 33(13) of the Sales Tax Act of 1990, if discrepancies are found. He urged the FBR to reconsider this policy, noting that ongoing legal proceedings regarding these matters should not be included in such affidavits.
