The commercial import sector has strongly objected to the recent tax reforms introduced by the Federal Board of Revenue (FBR). Saleem Wali Muhammad, Chairman of the Pakistan Chemicals and Dyes Merchants Association (PCMA), expressed significant concerns about the increasing regulatory measures by the FBR and what he deems as overreach by the authorities.

Saleem Wali Muhammad criticized the newly implemented electronic invoicing and e-filing systems that have become part of this fiscal year’s federal budget. He stated that these systems, which were implemented without sufficient consultation and trial, are complicating the tax filing process instead of simplifying it. PCMA feels that these hastily implemented measures are increasing the monthly compliance burden on businesses.

In response to growing discontent, Muhammad proposed the establishment of a joint committee comprised of representatives from commercial institutions and the FBR. The purpose of this committee would be to resolve complaints related to the alleged misuse of power by tax authorities and to ensure the enforcement of tax laws within fair and reasonable limits.

While recognizing some positive initiatives by the FBR, such as penalizing non-filers and reclassifying taxpayers to better reflect their financial activities, Muhammad is skeptical about the ability to meet revenue targets under the current framework. He mentioned that a lack of clarity in new policies could impact business operations and ultimately harm the FBR’s tax collection goals.