LCCI laments electronic compliance charges

Chamber president urges PM to intervene, alleviate burden on business community

LAHORE:

The Lahore Chamber of Commerce and Industry (LCCI) has expressed deep concerns regarding the steep charges imposed for electronic compliance under SRO 428(I)/2024. In a letter to Prime Minister Shehbaz Sharif, LCCI President Kashif Anwar highlighted the additional burden these charges place on the already struggling business community.

Anwar pointed out that businesses in Pakistan are grappling with severe economic challenges, including inflation, rupee devaluation, high energy costs, and high interest rates. He expressed deep concerns about the exorbitant charges quoted by the sole license holder for integrating electronic invoicing systems with the Federal Board of Revenue (FBR) as mandated by SRO 428(I)/2024 dated March 22, 2024.

Anwar noted that the business community has already been adversely affected by recent amendments in the Finance Act 2024 and certain SROs, including SRO 350(I)/2024 and SRO 1842(I)/2023. In this context, he described the one-time setup fee of Rs1,500,000 and annual maintenance charges of Rs3,500,000 or Rs60 per invoice (whichever is higher) as prohibitively high for commercial businesses. Such costs, he warned, threaten the viability of many businesses and could lead to their closure.

"Considering the resources and grants allocated for automation, we strongly believe that the cost of installation and maintenance for the online integration of businesses should be minimal to avoid undue financial stress on taxpayers and to enhance documentation," Anwar added.

He underscored that the challenges faced by the business community require thoughtful strategies and policies to support the business sector and economic growth. He urged the prime minister to intervene promptly to address these issues and ensure a fair and sustainable solution.

The LCCI president also reaffirmed his support for government efforts to promote documentation and expand the tax base. He expressed confidence that under the prime minister's visionary leadership, the Pakistani economy would see a significant turnaround.