Businessmen ask PM to review SRO 350

Traders unable to file sales tax return due to SRO’s application

LAHORE:

The Lahore Chamber of Commerce and Industry (LCCI) has sought intervention of Prime Minister Shehbaz Sharif to address the challenges arising from the recent implementation of SRO 350.

In a letter to the PM, LCCI President Kashif Anwar said that the business community was confronted with multi-dimensional economic challenges. Businessmen were facing hurdles in the way of filing sales tax returns after the implementation of SRO 350, dated March 7, 2024, as it linked the filing of sales tax return by goods’ buyers to tax compliance by their suppliers. “If any of the suppliers does not file tax return, the subsequent buyer is unable to submit his sales tax return or has to leave the respective input tax already paid by him,” he elaborated.

The LCCI chief mentioned a specific example in that regard involving the Lahore Electric Supply Company (Lesco). “Lesco, being the sole electricity supplier in Lahore, has not yet filed its sales tax return.”

Anwar lamented that due to the delay in submission of sales tax return by Lesco, every business, being a consumer of the public power utility, was unable to file sales tax return. “This creates a significant bottleneck as the inability to file returns results in substantial financial and operational disruption for the businesses.”

He appealed to the PM to review the implementation of SRO 350 in consultation with stakeholders.

The business community is already facing a tough economic situation as factors like economic instability, high inflation, exorbitant mark-up and regulatory obstacles are contributing to the challenging environment. The LCCI president also voiced concern over the newly introduced laws in the budget, stating that tax policies were targeting those already in the tax net. He emphasised the need for digitalising and broadening the tax net.