LAHORE: President and founder of Friends Economic & Business Reforms (FEBR) and former vice-president of the Lahore Chamber of Commerce & Industry Kashif Anwar has urged the Federal Board of Revenue (FBR) to facilitate the retailers who have one shop.
While talking to a delegation of retailers, Kashif Anwar said the FEBR is for documentation and wants that tax base and revenue should increase by bringing those who are not in the tax net and identify those persons who do not file their tax returns.
He said the FBR has to provide more and more facilitation to filers and distinguish them from those persons who are not registered. Our discussion is not to criticize any law but as an institution, it is our desire that such rules & regulations should be revisited whose applicability in practical is difficult for any person, community or group of persons. The same is in the case with some categories of Tier-1 retailers such as area, amount of electricity bill and condition of air-conditioned mall.
He said that in Sales Tax Act, there is no defined turnover limit that restricts a retailer to get them register in sales tax. The qualifying condition of 1000 sq. ft. area for POS integration for all retailers not keeping in view of any other criteria is not justifiable and practical.
He further said that a retailer whose area is more than 1000 sq. ft. could not compete with the retailers whose area is less than 1000 sq. ft. as he has to charge sales tax from the customers after value addition. However, a retailer who is not registered, his price will be straight forward less than 17 percent.
He added that how it will be evaluated that turnover of those retailers whose area is less than 1000 sq. ft. would not exceed the turnover of those retailers whose area is more than 1000 sq. ft. so they can also qualify for POS integration.
Kashif Anwar said that what has been decided about those retailers whose turnover is in billions and their shop area is not more than even 250 sq. ft. or rather have no premises.
Kashif Anwar said that a retailer whose area is more than 1000 sq. ft. will be eligible for POS integration and has to follow all rules & regulations as are required under the Sales Tax Act. On the other hand, a retailer whose area is less than 1000 sq. ft. is not required to follow any condition of Sales Tax Act.
He said that initially a retailer whose area is more than 1000 sq. ft. or whose twelve months bill of any period is more than twelve lakh or small shop in any air-conditioned mall has to purchase a system, hire an operator to run each machine and finally has to hire the services of tax consultant on monthly basis who will file statements, returns and manage documentation which is required as per law. It will increase the cost from those retailers who are not eligible for POS integration.
He said that it is not financially and practically viable for all retailers who have small shops in air-conditioned to get them register for POS integration. The limit of electricity bill of rupees twelve lakh should be fixed after evaluating the electricity cost per unit keeping in mind present electricity cost per unit and increase in unit price in future with the value of per unit cost when this law was made.
Kashif Anwar said that the amendments should be made in the law keeping in view of the current scenario and changes in business conditions after Covid-19 to make it practical for applicability.
He said that the registration of retailers should be stopped for POS integration whose twelve months bill of any period is more than twelve lakh rupees till the electricity values are determined as per current rates.
He said that the registration should also be stopped of retailers who have small shops in air-conditioned malls until their shop areas are redefined with the condition of a shop in air-conditioned mall.
“Stop the registration of those retailers for POS integration who has one outlet irrespective of their outlet area. In order to provide enabling environment to retailers, the condition of area should be eliminated in the next budget”, he said adding that in the upcoming budget, exemption for ONE RETAILER ONE SHOP should be announced from POS integration irrespective of the area.
