LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) Wednesday issued a formal appeal to the Federal Board of Revenue (FBR) regarding the recent implementation of statutory regulatory order (SRO) 350(I)/2024, which amends the Sales Tax Rules of 2006.
The chamber said that the amendments outlined in the SRO significantly impacted businesses categorised as individuals, associations of persons, and companies, excluding manufacturers.
LCCI President Kashif Anwar emphasised that the amendment disproportionately burdened businesses already compliant with tax regulations. He expressed concern that the SRO would impede efforts to promote documentation within businesses, particularly affecting retailers already within the tax framework, as they have already been affected by fixing deductible withholding tax amount under Section 236 H of the Income Tax Ordinance 2001 exceeding Rs. 100,000 in the last 12 months to integrate with the point of sale (POS) system. He pointed out that this amendment is affecting reta
ilers across 21 different sectors/products, citing their lack of expertise, technical know-how, and financial resources.
He noted that individuals, association members, or directors of single-shareholder companies would be mandated to undergo biometric verification annually at a National Database and Registration Authority (NADRA) e-Sahulat Centre during July. He said that failure to comply with this requirement would result in restrictions on electronic return filing, necessitating commissioner authorisation through IRIS.
He also expressed concerns over the regulatory framework, asserting that existing rules and regulations imposed undue burdens on those already compliant with tax obligations.