RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) on Sunday requested the Federal Board of Revenue (FBR) to defer its policy of switching to the digital mode of payment for amounts over Rs250,000 as it is not possible for the business community to adopt it from November 1.

In a statement, RCCI President Nadeem Rauf said that at present banks did not have the capacity to adopt digital payment methods. Also, the corporate sector does not have the required information, preparation and capacity.

He appealed to the FBR for further extension of the deadline for digital payment of Rs250,000 to the business community.

He said the business community was not against documenting the economy but the ground reality also needed to be looked into. The new procedure should be implemented in stages, he suggested.

Mr Rauf said the procedure was being implemented through a presidential ordinance that had not yet been extended by parliament, leaving the business community faced with a precarious situation.

It may be recalled that according to a statement issued by the FBR, significant changes have been introduced in the Tax Laws Third Amendment Ordinance 2021 aimed at documenting the economy and bringing the supply chain into the tax net.

Under the new procedure, the business community can repay expenses by check, pay order, bank draft or banking method. From November 1, they will have to disclose their expenses through digital banking method.

Published in Dawn, November 1st, 2021