The SITE Association of Industry, a prominent representative body for businesses in the Sindh Industrial Trading Estate, has issued a strong appeal to the Federal Board of Revenue (FBR), urging an immediate extension to the deadline for filing monthly sales tax returns. The association cites widespread and severe technical challenges encountered by taxpayers attempting to utilize the FBR’s online IRIS system, creating significant hurdles for businesses across various sectors.
Ahmed Azeem Alvi, the President of the SITE Association of Industry, voiced the growing frustration and concern within the business community regarding the persistent malfunctions plaguing the IRIS system. In a strongly worded statement released earlier today, Alvi detailed a litany of technical obstacles preventing businesses and individuals from fulfilling their tax obligations in a timely manner.
Among the key issues highlighted by the SITE President are the recent and abrupt changes implemented in the Harmonized System (HS) Code regime. This sudden shift to an 8-digit HS Code, while intended to streamline trade and tax classifications, has been poorly communicated and implemented, leaving businesses scrambling to understand and apply the new codes correctly. The lack of adequate guidance and the swift enforcement have added a significant layer of complexity to the already intricate tax filing process.
Furthermore, the IRIS system is reportedly facing persistent problems with the acceptance of units of measurement. Businesses are encountering errors and rejections when attempting to input standard units for their goods, further delaying the completion of their sales tax returns. This seemingly minor technical glitch has widespread implications, particularly for manufacturing and trading entities dealing with diverse product categories and measurement standards.
Perhaps the most critical and frequently reported issue is the recurring failure of the annexure upload functionality within the IRIS system. Annexures, which contain crucial details and supporting documentation for sales and purchases, are essential components of the sales tax return. The inability to upload these documents effectively renders the entire online filing process futile, forcing businesses into a state of limbo and increasing the risk of missing the filing deadline.
Alvi emphasized that these technical deficiencies are not isolated incidents but rather systemic problems affecting taxpayers across a multitude of industries. He underscored the detrimental impact these disruptions are having on the entire supply chain, hindering the ability of manufacturers, distributors, and retailers to accurately and promptly file their sales tax returns. This logjam in the tax filing process not only creates administrative burdens for businesses but also has the potential to disrupt commercial activities and overall economic efficiency.
The SITE President also issued a stark warning regarding the potential consequences of inaction. He cautioned that if the FBR fails to address these technical issues with urgency and provide adequate relief, businesses will inevitably face unwarranted penalties for late filing. This would not only impose an additional financial burden on already struggling enterprises but also negatively impact the government’s own tax collection efforts, as businesses become increasingly bogged down in technical difficulties rather than focusing on accurate and timely compliance.
In a direct appeal to the highest echelons of government, Ahmed Azeem Alvi urged Prime Minister Shehbaz Sharif, Federal Minister for Finance and Revenue Muhammad Aurangzeb, and Commerce Minister Jam Kamal Khan to intervene immediately. He called upon them to direct the FBR to swiftly rectify the identified glitches within the IRIS system and, crucially, to grant an extension of at least two weeks for the filing of monthly sales tax returns. This extension, the SITE Association argues, would provide much-needed breathing room for businesses to navigate the technical challenges and ensure compliance without incurring undue penalties.
The SITE Association of Industry reiterated that a prompt and effective resolution to these technical difficulties is paramount for maintaining smooth business operations and fostering a culture of tax compliance. The association remains optimistic that the government will acknowledge the genuine concerns and hardships faced by taxpayers and will implement the necessary measures to facilitate a seamless and efficient tax filing process. Failure to do so could have significant repercussions for businesses, the supply chain, and the overall economic landscape of the country. The business community now awaits a positive and timely response from the relevant authorities to alleviate the current predicament and ensure a fair and functional tax system.
