Lahore: The Lahore Chamber of Commerce and Industry (LCCI) has called on the Federal Board of Revenue (FBR) to expedite the release of long-pending tax refunds, highlighting that delays are exacerbating financial difficulties for businesses across Pakistan, especially amid the current economic downturn and high energy costs.

According to Lahore Chamber of Commerce and Industry, LCCI President Mian Abuzar Shad, along with Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry, voiced significant concerns over the impact of withheld refunds on the operational capacity of businesses, particularly small and medium enterprises (SMEs). They noted that the current economic conditions, compounded by global inflationary pressures, fluctuating commodity prices, and the depreciation of the Pakistani Rupee, are putting severe pressure on businesses.

The LCCI leadership emphasized that the lack of timely tax refunds is creating severe liquidity issues, preventing businesses from reinvesting in operations, expanding their ventures, or retaining employees. For SMEs, which are crucial to the economy yet highly sensitive to cash flow disruptions, these delays could lead to supply chain disruptions, increased debt, or even bankruptcy. Many are struggling to cover essential costs such as salaries, utilities, and payments to suppliers.

The Chamber’s office-bearers highlighted that this liquidity crunch is stifling not only domestic trade but also Pakistan’s competitiveness in global markets. Delays in refunds have forced businesses to reduce production, scale back expansion plans, and, in some cases, lay off employees, which in turn impacts consumer spending and government tax revenues.

Mian Abuzar Shad called for swift government action to resolve the backlog of pending refunds, which has been a long-standing issue for the business community. He argued that the release of these funds is crucial, not a luxury, and should be expedited to support business continuity.

Furthermore, the LCCI proposed that the FBR streamline its refund process to prevent future delays. Recommendations include introducing automated refund systems or expedited processing, particularly for export-oriented businesses, to ensure timely disbursement without unnecessary holdups.

The leadership also suggested that the FBR improve its communication with the business community to more effectively address concerns and create a more transparent process that prevents undue delays in refund payments.