KARACHI, JUL 7 /DNA/ – A federal budget conference under the chairmanship of Mr. Saquib Fayyaz Magoon, Acting President FPCCI, was held at FPCCI Head Office in Federation House, Karachi, to highlight technical issues in the federal budget 2025 – 26; along with recommendations and pragmatic solutions for their swift redressal. The conference was attended by multi-sectoral trade bodies, associations and chambers from across Pakistan physically and online in a large number. Notably, there was also senior representation from FBR and PRAL.
Mr. Saquib Fayyaz Magoon, Acting President FPCCI, briefed the participants that it is not possible to abide by the provisions contained in the Sales Tax Act 1990; such as e-invoicing and e-bilty for each and every consignment. He informed that the sentiment of the business community is unanimously against the newly introduced provisions of 37A and 37AA of the Sales Tax Act 1990 – stating that the honorable taxpayers of Pakistan are not criminals and shouldn’t be treated that way. It seems that FBR has failed to achieve the tax collection target; and, the taxation matters are now seem to be resolved by arresting the already registered and law-abiding taxpayers and to put them behind the bars unfairly, he added.
Mr. Asif Sakhi, VP FPCCI, reiterated that trade and industry is ready to cooperate with the government in its efforts to collect taxes in an honorable manner; but, not at the cost of self-esteem and dignity of the taxpayers.
Mr. Nasir Khan, VP FPCCI, highlighted that, in the present scenario, the country seems to be rudderless in its economic policymaking; and, this lack of effective governance may lead to unrest – and, we, as businessmen, are presently left with no option than to shut down our factories to avert losses, he added.
Haji Muhammad Afzal, senior member FPCCI, added that FBR failed to check the unregistered sales and such businesses shouldn’t be allowed to operate who represent unregistered persons or entities.
Mr. Umar Rehan, Chairman of Pakistan Vanaspati Manufacturers Association (PVMA), said that aforesaid provisions contained in the budget may result in closure of multiple industrial sectors. We are with the government for its commitment to digitalization; but, in presence of the current budgetary provisions, it is impossible to cooperate with the FBR. We cannot cut invoices in cash amounting more the 2 lacs under the prevailing circumstances; where, cash is not considered a banking instrument.
Towel Manufacturers Association maintained that our businesses are going through losses at the moment; and, we are being labeled by the government as thieves. Our neighboring countries are taking advantage of the current situation and taking away our export customers. The business environment has now reached a point that international buyers are asking whether we are shifting our businesses to Dubai or somewhere else.
Representatives from LNG Association expressed their concerns regarding provisions of SRO 709(I)/2025 of Sales Tax; and, shared that the setup required to make e-invoicing facility available has high installation charges for which the sector is not ready. It is further revealed during the discussion that a lockup sort of setup is being built in the relevant RTOs and that is causing harassment in the business community.
Representatives from Pakistan Security Agencies Association said that they tried to contact PRAL authorities several times; but, they don’t know how to proceed further in respect of procedure to integrate the system of taxpayers to the PRAL setup – and, informed that FBR portals are not ready to cater to the provisions.
Mr. Zubair Bilal, Chief Commissioner, IR, Large Taxpayers Office (LTO) Karachi, assured FPCCI of his diligent consideration of the technical points raised collectively from the apex platform of FPCCI – and, agreed on a continued, inclusive and result-oriented consultative process with the business community.
