| Karachi: President of the Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, has urged the Federal Board of Revenue (FBR) to reconsider the mandatory submission of affidavits for sales tax returns. The news was reported by a source on October 17.
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He emphasised that while the affidavit requires taxpayers to declare that all provided information is accurate, the reality is that taxpayers may unknowingly be penalized for errors or misconduct committed by their vendors.
Bilwani noted that FBR officials had previously advised businesses to verify vendors’ status on the FBR website before making purchases, a practice that was widely followed. However, the new affidavit requirement has raised concerns that taxpayers may now be held responsible for vendors’ tax evasion, placing an unfair burden on businesses.
He also voiced concerns over FBR’s transformation plan, which suggests an increase in audits. This, he argued, contradicts the Finance Minister’s budget speech, where it was assured that greater use of IT and AI-enabled systems would reduce human interaction and automate the audit process.
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While Bilwani acknowledged that parts of FBR’s transformation plan hold promise, he pointed out that several issues and gaps remain. He called for urgent consultations with the business community and stakeholders to address these challenges and ensure the plan’s effectiveness. |
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