Latest news with #RashidMehmoodLangrial
Business Recorder
25-04-2025
- Business
- Business Recorder
Complexities: PCDMA concerned over issues faced by taxpayers
KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has expressed serious concern over the increasing challenges faced by taxpayers in filing their returns due to the complex structure of the newly introduced Annex H1 and Annex J, as well as, the technical difficulties related to Unit of Measure (UoM) requirements. In a letter to the Chairman of the Federal Board of Revenue, Rashid Mehmood Langrial, PCDMA Chairman Salim Valimuhammad and Danish Saleem, Advisor to the Subcommittee for Sales and Income Tax, pointed out that the newly uploaded Annex H1 by the FBR was causing confusion and compliance issues due to unclear guidelines, frequent regulatory changes, and persistent portal glitches. 'Taxpayers are finding it increasingly difficult to reconcile withholding statements and comply with filing requirements due to the overly complex design of Annex H1,' said Salim Valimuhammad. 'The situation is further aggravated by the form's calculation mechanism, which mistakenly subtracts Sales Value instead of Cost Value.' PCDMA Chairman emphasised to the FBR the need to allow taxpayers to voluntarily enter the Cost Value before submission of returns, to ensure accurate reporting and avoid erroneous assessments, delayed refunds, or penalties. 'Taxpayers continue to face identical challenges with Annex J, especially when reconciling transactions under constantly fluctuating tax rates. Unclear guidelines combined with recurring portal malfunctions are imposing excessive compliance burdens - particularly on small businesses and individuals lacking professional tax assistance. Most critically, Annex J replicates Annex H1's fundamental error by deducting Sales Value rather than Cost Value, a systemic flaw that PCDMA confirms is causing rampant inaccuracies in tax filings across the board.' Another major challenge reported by members is the technical complexity of the Unit of Measure (UoM) codes. The lack of clarity in categorizing goods and services, coupled with system glitches, is causing filing errors and unnecessary delays, especially for businesses involved in diverse inventories and import/ export operations. PCDMA urged that such major changes should not be implemented without consulting key industry stakeholders. The association is urging the FBR to involve trade bodies and professionals in the decision-making process to ensure smoother implementation. Salim Valimuhammad said 'A collaborative approach will help reduce errors and build trust among the taxpayer community.' Copyright Business Recorder, 2025
Express Tribune
16-03-2025
- Business
- Express Tribune
POS systems disrupt retail operations
Listen to article The Chainstore Association of Pakistan (CAP), on Saturday, raised serious concerns over ongoing technical and enforcement challenges faced by tier-1 retailers integrated with the Federal Board of Revenue's (FBR) Point of Sale (POS) system. CAP Chairman Asfandyar Farrukh urged FBR Chairman Rashid Mehmood Langrial to intervene immediately, as persistent system failures and enforcement actions are disrupting retail operations and creating significant commercial risks. Despite full compliance, integrated retailers face frequent technical issues, including forced disconnections due to profile expiry, invoices failing to sync with the FBR portal, unexplained version changes, and poor communication of system updates. Additionally, manual invoice reconciliation, the lack of bulk download options, and outdated technical documentation (unchanged since 2019) further burden retailers. Retailers also report excessive enforcement actions, including sudden sealing of their businesses due to unverifiable invoices, often resulting from system failures rather than negligence. Frequent demands for additional tax deposits before sales tax return filings, despite valid input tax adjustments, are adding to retailer frustration. "Such demands must be rationalised to prevent undue pressure on the compliant businesses. These actions not only damage retailer confidence but also discourage further adoption of the POS integration system," CAP said. The situation has worsened with the introduction of SRO 69(I)/2025, imposing impractical compliance requirements amid system inefficiencies. Patron-in-Chief Rana Tariq Mehboob called for revising the Sales Tax Rules 2006 in consultation with the organised retail sector and requested a meeting with FBR leadership to resolve these critical challenges.
