LCCI President Urges Government to Delay Disruptive Amendments

The Lahore Chamber of Commerce and Industry (LCCI) has reached out to the government seeking assistance in delaying amendments that are anticipated to disrupt business operations. LCCI President Kashif Anwar, in a letter to Prime Minister Shehbaz Sharif, highlighted concerns regarding the impact of recently introduced SROs 457(I)/2024, SRO 350(I)/2024, and SRO 1842(I)/2023 on compliant businesses.

Of particular concern is SRO 350, which ties buyers' ability to file tax returns to their suppliers' compliance. This linkage has triggered a potential chain reaction of non-compliance among suppliers, threatening to halt the entire supply chain and adversely affecting businesses at various levels.

Anwar emphasized that the business community in Pakistan is grappling with numerous economic challenges, such as inflation, devaluation, and high energy prices, which are impeding private sector growth and causing difficulties for tax-compliant individuals.

The LCCI president proposed that instead of penalizing buyers for suppliers' non-compliance with sales tax returns, the Federal Board of Revenue (FBR) should enhance internal checks to combat fake invoices and take targeted actions against parties engaged in fraudulent practices. Anwar stressed that while supporting government efforts to enhance tax compliance, the current measures risk pushing compliant taxpayers out of the system, ultimately undermining the economy and taxation structure in Pakistan.

Anwar expressed hope that the prime minister would promptly address these concerns and postpone the implementation of the aforementioned SROs until comprehensive discussions with stakeholders are conducted.