Islamabad, Oct 17: The requirement for an affidavit from the CFO by the FBR should be deferred, as buyers do not have access to the multi-tier supply chain.
They can only verify the supplier’s status through the FBR system to check if the supplier is on the ATL.
Holding buyers responsible for the entire supply chain is illogical. The government should focus on creating a conducive business environment that increases trade volumes and, accordingly, enhances tax collection.
We do not support any wrongdoing and strongly encourage strict compliance with tax policies. However, the government must devise a strategy that restores the business community’s confidence.
The FBR owes billions in legitimate refunds to businesses, who are bearing a 19% financial cost due to delays. Such harsh measures will only increase the hardships of legitimate businesses.
Recent aggressive actions by the FBR targeting legitimate businesses unilaterally have sent shockwaves through world-class factories.
The role of trade bodies and associations should be enhanced and given a role in Alternative Dispute Resolution (ADR), supporting the FBR in ensuring compliance with tax policies.
We urge the development of a fool-proof mechanism and regulatory framework by the FBR that is logical, one that businesses can fully adhere to, and which allows hassle-free operations while addressing any potential leakages. The principle of equity must be applied when making such decisions
The President of the Karachi Chamber of Commerce and Industry (KCCI) expressed concern over the current situation, stating, “It is a very confusing situation.” He urged the Federal Board of Revenue (FBR) to either provide clear guidance on which vendors should be involved in purchases or to establish Standard Operating Procedures (SOPs) for such transactions.
At present, businesses only verify whether a vendor is blacklisted, and if the vendor is not flagged, they proceed with the purchase.
