The Karachi Chamber of Commerce and Industry (KCCI) has called upon the Federal Board of Revenue (FBR) to address challenges in the business registration process, emphasizing the need for streamlined options in the IRIS registration form.
In its proposals for the upcoming budget 2021/2022, KCCI highlighted the absence of specific options for business principal activities, particularly for entities engaged in commercial export and import activities.
According to KCCI, the current IRIS registration form (181-form) lacks the provision to declare “Commercial Exporter/Importer” as the principal activity. This omission forces businesses to choose options that do not accurately represent their primary operations. For instance, the chamber noted that selecting “WHOLESALER” as the principal activity, due to the absence of a more suitable category, results in an inaccurate portrayal of the business.
One of the main concerns raised by KCCI is the complexity involved in specifying the business principal activity as “Manufacturer.” The process is deemed lengthy and complicated, with the chamber pointing out that both principals and business activities are listed in the same section of the IRIS 181-Form, leading to confusion among taxpayers.
The proposal suggests that a comprehensive range of business activities should be incorporated as options in the IRIS 181-Form to provide clarity and flexibility to taxpayers. KCCI advocates for a system where concerned associations issue certificates, allowing FBR/Board to change the taxpayer’s status as a manufacturer. This change, if implemented, aims to address the existing challenges faced by both importers and manufacturers.
Furthermore, KCCI stressed the importance of separating the importer and manufacturer categories to streamline the registration process. The absence of this provision has led to numerous problems for taxpayers engaged in both activities, contributing to delays and complications during the registration process.
In its rationale, KCCI emphasized that simplifying the business registration process is crucial for allowing taxpayers to commence their operations without unnecessary delays and complications. A well-defined and clear taxpayer profile would not only benefit businesses but also contribute to a more accurate representation of economic activities in the tax system.
The chamber urged the FBR to incorporate the proposed options directly into the registration system to eliminate the risk of errors during the registration process. By providing more comprehensive and accurate options for business principal activities, the registration system can better align with the diverse nature of businesses in Pakistan.
As the budget proposals are considered for the upcoming fiscal year, KCCI’s recommendations highlight the importance of addressing these procedural challenges to create a more business-friendly environment. Streamlining the registration process is seen as a positive step towards encouraging entrepreneurship and ensuring that taxpayers can navigate the system efficiently and effectively.
