KARACHI, Oct 02 (DNA): Mian Nasser Hyatt Maggo, President FPCCI, has
said that the business, industry and trade community of Pakistan
unanimously opposes the imposition of mandatory digital and online
payments in Pakistan.
He was referring to a new law, i.e. The Tax Laws (Third Amendment)
Ordinance 2021. The new law makes it mandatory to make all business and
commercial transactions exceeding Rs. 250,000/= through online and
Mian Nasser Hyatt Maggo also clarified that he never hailed the
imposition of mandatory digital payments for business transactions;
instead, he only hailed 40-day hold in its coming into force.
So that, the business community and the government can sit together and
find out a solution of the issue. FPCCI was misquoted in a few
newspapers few days back on the issue, he said.
Mian Nasser Hyatt 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
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.
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 said.
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.