LAHORE    -   LCCI acting president Khawaja Shahzad Nasir and vice president Faheem-ur-Rehman Saigal said that the issues created in 10 years could not be resolved in a month. They said that business community has reservations on various taxation measures.

“Reservations of business community must be addressed as they are backbone of the economy”, the LCCI office-bearers said and added that difficult taxation system and high frequency of taxes have forced business community towards protest that was not a good sign for the economy. They said that government should take business community into confidence immediately and address their genuine reservations. They further stated that there were misunderstandings amongst the traders in particular which need to be addressed urgently. They were of the view that a copy of CNIC to be attached to every invoice was not possible. They said that the rate of withholding tax was high compared to their margins. They urged the government to show flexibility. They said that the number of statements to be provided to government would require constant help from accountants and tax lawyers. That will increase the costs of doing business. They said that three statements in one year-sales tax month, withholding every six months and income tax every year was big injustice. They suggested implementing Malaysia model where number of reporting has been substantially reduced. They said that businessmen were also afraid of becoming withholding agents and fear mistakes would be heavily penalized.

All these issues can be resolved through better communication and some flexibility so that the full burden of documentation could be spread over a period of time.

They said that the government should ensure that prices of daily use items especially locally produced food should not increase due to budgetary effects.