Karachi: The Karachi Chamber of Commerce and Industry (KCCI) has officially requested the Federal Board of Revenue (FBR) to urgently revisit and discuss SRO 350 (I)/2004. The President of KCCI, Iftikhar Ahmed Sheikh, expressed significant concern over the unresolved issues and complications arising from this regulation, which he believes are adversely affecting the business community in Karachi.

According to Karachi Chamber of Commerce and Industry, President Sheikh has sent a letter to the Chairman of the FBR, Malik Amjed Zubair Tiwana, urging an immediate meeting at KCCI or, if not possible, an urgent online session to address the situation. The regulation in question links the tax return filings of buyers directly to their suppliers’ compliance, creating widespread disruption among utilities and businesses. Entities such as SSGC and K-Electric have reportedly faced difficulties in filing their sales tax returns on time due to these complications.

Sheikh also highlighted the potential ripple effects throughout the supply chain, noting that non-compliance could halt operations across various sectors. Additionally, the specific requirements for submitting balance sheets under SRO 350 could further complicate compliance, contrasting with previously submitted tax details and exacerbating the business community's challenges.

The ongoing uncertainty and the perceived risk of significant trade disruptions, including the potential halting of essential exports like livestock and produce, underscore the urgency of revisiting this regulation. Sheikh warns that without prompt action, the business environment could suffer greatly, particularly in the context of the already challenging economic conditions.