LCCI asks PM to address challenges arising out of SRO 350(I)/2024

Lahore: The Lahore Chamber of Commerce and Industry (LCCI) has again sought intervention of Prime Minister Shahbaz Sharif to address challenges arising from the recent implementation of SRO 350(I)/2024, dated March 7, 2024.

In a letter to Prime Minister Shahbaz Sharif, President of the Lahore Chamber of Commerce and Industry Kashif Anwar said that the business community in Pakistan is confronted with steep and multi-dimensional economic challenges.

Kashif Anwar said that the business community is facing severe issues in filing their Sales Tax Returns after the implementation of SRO 350(I)/2024, dated 7th March 2024 as it has linked the buyers' ability to file Sales tax return to the compliance of their suppliers.

He said that if any of the suppliers does not file their return, the subsequent buyer is unable to file their sales tax return or has to leave the respective input tax already paid by him to file return.

The LCCI President mentioned a specific and pressing example of this issue involves the Lahore Electric Supply Company (LESCO). LESCO, being the sole electricity provider in Lahore, has not filed its Sales Tax Return yet.

He said that due to non-submission of Sales Tax Return by LESCO, every business, being a consumer of LESCO, is unable to file its Sales Tax Returns. This creates a significant bottleneck, as the inability to file these returns results in substantial financial and operational disruptions for businesses.

Kashif Anwar appealed to Prime Minister Shahbaz Sharif to kindly review the implementation of the SRO 350(I)/2024, dated March 7, 2024 in consultation with the stakeholders.

The LCCI President added that the business community is already facing a tough economic situation and factors like economic instability, high inflation, high mark up rate and regulatory challenges contributing to the challenging environment and created a difficult landscap for the business community.

LCCI President Kashif Anwar also expressed his concerns over the newly introduced laws in the federal budget, stating that the tax policies primarily target those who are already within the tax net, whether they are salaried individuals, manufacturers or retailers. He emphasized the need to digitize and enhance the tax net.

He highlighted numerous measures in the federal budget 2024-25 for the next financial year that will affect exports, manufacturing, increase inflation and called for their revocation.

Kashif Anwar said that the challenges being faced by the business community require thoughtful strategies and policies to support business sector and economic growth.

The LCCI President hoped that Prime Minister Shahbaz Sharif would take immediate notice of the situation and would give immediate directions to the authorities concerned to address challenges arising from the recent implementation of SRO 350(I)/2024, dated March 7, 2024.