KARACHI: Mian Nasser Hyatt Maggo, President FPCCI while referring to a new Tax Laws (Third Amendment) Ordinance 2021, has said the business community unanimously opposed the imposition of mandatory digital and online payments in Pakistan.
The new law makes it mandatory to make all business and commercial transactions exceeding Rs 250,000 through online and digital channels.
Maggo said that when the new law was promulgated, FPCCI immediately escalated the issue with the relevant authorities and pointed out the challenges posed by mandatory online and digital payments as Pakistan’s economy runs on the sales made on post-dated cheques and credit is usually for 2-3 months and the businesses cannot comply with this condition in the new ordinance in any way.
Additionally, there are always part or delayed payments involved, based on trust and business practices of the country, when it comes to large B2B services.
FPCCI chief called out the unpreparedness of the government that merely after two days of the new ordinance came into force, the government was forced to suspend mandatory digital payments requirement for 40 days; because, the business transactions had come to a halt in just two days. He added that it shows how inappropriate and impractical the new conditionality is for business and economy of Pakistan.
Maggo has reiterated that FPCCI is looking forward to have detailed discussions with the FBR and minister of finance & revenue on the issue at the earliest.