Monday, September 26, 2022
HomeGeneralThe FPCCI expresses its opposition to mandatory digital payments.

The FPCCI expresses its opposition to mandatory digital payments.

The President of the Federation of Pakistan Chambers of Commerce and Industrial, Mian Nasser Hyatt Maggo, has stated that the Pakistani business, industry, and trade community unanimously rejects the imposition of mandatory digital and online payments in Pakistan. He was referring to the Tax Laws (Third Amendment) Ordinance 2021, which is a new statute. All business and commercial transactions over Rs. 250,000/= must now be conducted through online and digital means, according to the new law.

Mian Nasser Hyatt Maggo further emphasised that he never praised the enforcement of required digital payments for commercial transactions; rather, he praised the 40-day moratorium on their implementation. So that the private sector and government may work together to find a solution to the problem. He went on to say that FPCCI had been misquoted in a few media about the matter a few days ago.

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FPCCI immediately escalated the issue with the relevant authorities after the new law was promulgated, pointing out the challenges posed by mandatory online and digital payments, as Pakistan’s economy is based on sales made on post-dated cheques and credit is typically for 2-3 months; and, businesses cannot comply with this condition in the new ordinance in a timely manner. When it comes to major B2B purchases, there are usually part or delayed payments involved, based on trust and business traditions of the nation

FPCCI Chief called out the unpreparedness of the government that merely after 2 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 2 days. He added that it shows how inappropriate and impractical the new conditionality is for business and economy of Pakistan.

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Mian Nasser Hyatt Maggo said that it is mind-boggling that the cash and cheque transactions by businesses would be treated as income instead of expenditure, if the new ordinance comes into force along with mandatory digital payments requirement. This kind of harsh and illogical law will result in non-compliance and street agitation by SMEs, he added.

FPCCI strongly feels that there will be no way the country can switch to mandatory digital payments. Additionally, the payments through cheques are perfectly legal and documented.

Mian Nasser Hyatt Maggo, as President FPCCI, has reiterated that FPCCI is looking forward to have detailed discussions with the honourable Minster of Finance & Revenue and FBR on the issue at the earliest.

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