Karachi, October 17, 2024 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lauded the Federal Board of Revenue’s (FBR) decision to temporarily defer the contentious requirement of an affidavit for sales tax returns. The FPCCI’s stance was clearly communicated by its president,
Atif Ikram Sheikh, who expressed his gratitude towards FBR Chairman Rashid Mahmood Langrial for taking the federation’s concerns seriously and addressing a pressing issue within the business community.
READ MORE: FBR Relaxes Affidavit Requirement for September Sales Tax Returns
In a public statement, Sheikh emphasized that the introduction of the affidavit condition was causing undue stress and discomfort for companies, particularly their Chief Financial Officers (CFOs) and representatives. He remarked that the requirement was seen as an unnecessary bureaucratic hurdle, creating widespread resentment and contributing to a climate of anxiety among tax filers across the country.
“We have been inundated with complaints from businesses all over Pakistan regarding this unnecessary burden. The affidavit condition had not only complicated the filing process but had also become a source of harassment for financial professionals,” Sheikh stated.
The FPCCI’s Senior Vice President, Saquib Fayyaz Magoon, played a pivotal role in securing this favorable outcome. Magoon, along with a delegation of senior FPCCI officials, engaged in high-level talks with the FBR’s top leadership, including Chairman Langrial, during an extensive meeting held at the FPCCI’s Federation House. During these discussions, the FPCCI leadership underscored that the existing provisions under the Sales Tax Act of 1990 already offer adequate mechanisms for ensuring responsible tax filing. They argued that additional affidavits or declarations were redundant and posed an unnecessary burden on businesses.
Magoon’s detailed presentation resonated with the FBR leadership, and after careful deliberation, Chairman Langrial agreed to defer the affidavit requirement with immediate effect. This decision is expected to provide much-needed relief to the business community, easing the sales tax filing process.
In a broader context, the FPCCI and FBR have agreed to hold further consultations aimed at developing mutually beneficial, pro-business, and growth-oriented proposals. The goal of these discussions is to ensure that taxation policies foster a conducive environment for economic growth while maintaining compliance with national regulations.
The FPCCI leadership has reiterated that a respectful and facilitative approach towards tax filers is crucial to promoting business confidence and fostering a more efficient tax system. This development marks a significant step forward in improving the relationship between the business community and the revenue authorities.