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Karachi: The President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, has requested the Federal Board of Revenue (FBR) to reconsider its requirement for submitting affidavits with sales tax returns. He highlighted the challenges and potential penalties for businesses due to discrepancies caused by vendors’ misconduct.
According to Karachi Chamber of Commerce and Industry, President Bilwani expressed concerns over the practicality and fairness of the affidavit requirement, which obligates taxpayers to guarantee the accuracy of submitted information. This stipulation places undue risk on business owners, as errors could occur despite their diligence, especially when vendors are involved in tax evasion.
President Bilwani recounted recommendations from FBR officials encouraging businesses to verify vendors via FBR’s website—a standard practice for many years. The recent mandate to submit affidavits, however, poses a risk to business owners, as they could be held accountable for vendors’ faults.
In his statement, President Bilwani also criticized the increase in audits announced under FBR’s transformation plan, which contradicts earlier assurances from the Finance Minister about reducing human intervention through automated and real-time audit processes. He argued that more audits would necessitate hiring additional auditors, potentially leading to more corruption and complicating the tax collection process.
Furthermore, he praised some aspects of the FBR’s transformation plan but noted that it also contains significant flaws that need to be addressed in consultation with the business community. His comments followed a recent meeting with the FBR Chairman at Customs House in Karachi, where he conveyed his hopes that FBR would consider the feedback and work towards a more tax-friendly environment for boosting business and economic growth.
The post KCCI President Calls for Deferral of Affidavit Requirement in Sales Tax Returns appeared first on Pakistan Business News.