Lahore Chamber of Commerce and Industry to prepare Standing Operation Procedures
Lahore, June 13, 2012 (PPI-OT): The Lahore Chamber of Commerce and Industry will prepare Standard Operating Procedures (SOPs) for Sales Tax Registration of Manufacturers and Traders and forward them to the FBR for approval and implementation.
The understanding reached during a meeting of three-member LCCI delegation with Chief Commissioner, RTO-I here on Wednesday. The LCCI delegation, led by Acting President Kashif Younis Meher, and comprising former Senior Vice President Abdul Basit and former Executive Committee Member Shahzad Azam Khan called on Chief Commissioner Raana Ahmad and informed her about undue delay in the registration of Industrial Sales Tax.
The Chief Commissioner gave a patient hearing to the LCCI point of view and assured to solve the issues being faced by the tax payers. She said that the LCCI should prepare SOPs for the registration of Manufacturers and Traders and these would be forwarded to the FBR for a final approval.
She said that the FBR was making all out efforts to facilitate the genuine businessmen and would continue to do so with the cooperation of Chambers of Commerce and Industry in the country. She said that all the RTOs have an excellent liaison with LCCI as both the sides belong to same camp and are working tirelessly for the promotion of economic activities in the country.
The LCCI Acting President Kashif Younis Meher while appreciating the positive response of the Chief Commissioner said that the Lahore Chamber of Commerce and Industry would have a meeting with all the stakeholders soon for the preparation of SOPs.
He said that it was very unfortunate that some black sheep in the FBR were trying to nullify the efforts aimed at expansion in the tax net. He said that when a businessman applies for new sales tax registration for setting up new industry, these elements made him to run from pillar to post deliberately use delaying tactics.
The LCCI Acting President said that it was a normal practice of the sales tax registration staff to take three to four months and during this period taxpayer is presented various excuses. Especially the new industry needs sales tax number for importing machinery which is not being issued for different reasons.
“Sales Tax Department says you take commercial sales tax number and import machinery. Industrial ST number will only be issued when your industry starts production then our staff will verify that production has been started and FBR will convert it to Industrial ST number which means new industry will not be able to take refund of ST paid on new machinery at import stage because commercial importer can get the refund of ST on machinery only if he sells it to any Industrial/manufacturer ST number holder.”
He said that no proper information and guidance is provided, thereby, causing long delays and till such time the business activity could not be carried out, he added. And machinery lying at ports adding heavy demurrage and detention to unit cost which was never calculated in feasibilities.
Kashif Younis Meher said this was the main reason that the FBR had failed to increase the number of taxpayers registered in the sales tax net.
Similarly, he said the process of conversion of the status of sales tax registration from individual to company was also long and cumbersome.
The LCCI Acting President, in his concluding remarks, said that the positive response given by the Chief Commissioner shows that both the organisations have excellent liaison and are firm to solve the issues of the tax payers.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854