KARACHI:

Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani has denounced the reintroduction of the requirement to file an affidavit with sales tax returns, asking the authorities to immediately suspend the condition until effective alternative measures are taken.

The KCCI president said that in response to their request, the Federal Board of Revenue (FBR) has rightly withdrawn the onerous requirement for September 2024 and notified it through a press statement.

It categorically stated that the filing of the affidavit will not be required for the filing of returns for the September 2024 tax period, which were due in October 2024.

It also stated that the FBR will actively seek alternative proposals from stakeholders till October 31 to address the serious issue of fake sales tax returns and ultimately the board will consider amending the affidavit requirement in light of the legitimate concerns of interested parties.

“There was no consultation with stakeholders and no viable alternative solutions were explored,” Bilwani noted.

He said the business community already faces immense pressures and the ill-conceived requirement will only exacerbate their challenges, contributing to unnecessary hassles and an environment of intimidation.

Bilwani noted that the duty to file the affidavit was fraught with significant challenges. Taxpayers and employees cannot provide guarantees or assurances regarding tax credits that may arise from fraudulent or fictitious invoices related to their suppliers and further levels in the supply chain.