According to a statement issued on Thursday, Ismail Suttar, president of the Employers’ Federation of Pakistan, has strongly criticized the unilateral decision of the Federal Board of Revenue (FBR) to change the Tax Laws Ordinance without discussing the relevant stakeholders.
Because most transactions are carried out through post-dated cheques, Ismail believes the move is unreasonable and unwelcoming. He believes that without a grace period of at least 40 days, the business sector will not be able to transition to a digital mode of operation.
Bringing the non-compliance sector into the tax net to accomplish the ambitious aim of Rs5.5 trillion tax collection by pounding on the mostly compliant corporate sector is a terrible disaster, and it is not the proper way to do so, according to Suttar, who added that it is not the correct method to do so.
The president of the European Federation of Manufacturers and Exporters (EFP) has called for the immediate suspension of the new tax law legislation until it has received the necessary approval from industrialists.