New Conditions Make Sales Tax Return Filing Impossible: KCCI

New Conditions Make Sales Tax Return Filing Impossible: KCCI

Karachi, January 30, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has raised serious concerns over the newly introduced conditions by the Federal Board of Revenue (FBR), stating that these measures have made sales tax return filing nearly impossible for traders and small businesses.

KCCI President Muhammad Jawed Bilwani, in a statement, criticized the latest requirement mandating the submission of monthly stock statements, consumption data, and intricate purchase, sales, and stock reports under notification 55(i)/2025. He stated that these stringent conditions imposed by the FBR have created significant obstacles for small-scale businesses and traders, making the timely submission of monthly sales tax returns nearly unmanageable.

Expressing strong reservations, the President of KCCI emphasized that the Karachi Chamber is facing immense pressure from small traders and business owners who find the requirements of SRO 55(i)/2025 highly challenging. Many small-scale importers, traders, and wholesalers lack the resources to hire professional accountants or tax consultants due to their low profit margins. “These businesses often rely on family-based manpower or a minimal number of employees, making it extremely difficult to comply with FBR’s demand for extensive data reporting, including H.S. code-wise classifications, purchase records, sales transactions, and stock balances,” he added.

KCCI has reiterated its long-standing stance that instead of simplifying tax procedures, the FBR continues to introduce unnecessary complexities that burden the already documented sector. The current inflationary pressures, harsh economic conditions, high tax rates, and security concerns are already hindering investment and business growth in Pakistan, particularly in Karachi. The imposition of these excessive compliance requirements further aggravates the situation rather than facilitating the business community.

While categorically rejecting these new filing mandates for stock and production data, KCCI urged the Chairman of the FBR to reconsider the matter. President Jawed Bilwani suggested that rather than enforcing these requirements on a monthly basis, the FBR should consult with relevant stakeholders and implement a more practical solution. “A better approach would be to require such data on an annual basis, giving businesses ample time to compile and submit accurate reports, instead of placing them under undue stress every month,” he proposed.

The Karachi Chamber of Commerce and Industry (KCCI) remains committed to protecting the interests of the business community and continues to demand fair and practical tax policies from the government. Moving forward, KCCI will engage in dialogue with policymakers to advocate for a more business-friendly taxation system that supports economic stability and growth.