RCCI President appeals for further extension of deadline for digital payment of Rs. 250,000 to business community
RAWALPINDI ( Web News )
The Rawalpindi Chamber of Commerce and Industry (RCCI) has strongly appealed to the Federal Board of Revenue (FBR) to immediately defer policy of switching over to the digital mode of payments for amounts over PKR 250,000, as it is not possible for the business community to adopt it from November 1, 2021.
RCCI President Nadeem Rauf in a statement said that at present, banks do not have the capacity to adopt digital payment methods. Also, the corporate sector does not have the required information, preparation and capacity. He appealed for further extension of the deadline for digital payment of Rs. 250,000 to the business community.
He said that 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. He cautioned that the security of post-dated-cheques, used as a means to ensure payments due against sales on credit, would not be available after switching over to the digital mode of payments.
RCCI President Nadeem Rauf said the procedure was being implemented through a presidential ordinance as the ordinance had not yet been extended by the assembly, leaving the business community facing 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.