By Our Correspondent
LAHORE: Senior Vice President of the Lahore Chamber of Commerce & Industry (LCCI), Tanveer Ahmed Sheikh, has expressed serious concern over the Federal Board of Revenue’s reported plan to deploy and expand the Track & Trace System (TTS) across multiple high-risk sectors, stating that while documentation and revenue reforms are necessary, the timing and implementation approach must not further strain an already pressured industrial sector.
He said that large-scale industry in Pakistan is not growing at the desired pace due to the persistent high cost of doing business, including elevated energy tariffs, interest rates, taxation complexity, import restrictions, and operational uncertainties. “In this environment, any additional compliance layer—if not designed carefully—can further disturb industrial activity and negatively impact ease of doing business,” he warned.
The LCCI SVP acknowledged that curbing illicit trade, smuggling, under-invoicing, and counterfeit products is important, but stressed that compliant and tax-paying manufacturers should not be treated as suspects. “If the system results in frequent disruptions, excessive monitoring, or arbitrary penalties due to technical issues, it will discourage investment, reduce production, and ultimately hurt employment and exports,” he added.
He emphasized that documentation should be enabled through facilitation, not fear, and urged FBR to adopt a reform model that focuses on risk-based enforcement, transparency, and reduced friction for compliant businesses.
LCCI’s Key Demands and Recommendations:
• Consultation with industry before implementation and sector-wise SOP finalization.
• Phased rollout with pilots and a clear transition timeline to avoid supply chain disruptions.
• Cost-sharing or incentives for compliance equipment/software where required.
• No punitive action for system faults; introduce a grace period and independent complaint redressal mechanism.
• Focus on illicit supply chains first—smuggled and non-duty-paid goods—so legitimate industry is protected.
• Simplify taxation and compliance processes to genuinely improve ease of doing business.
Tanveer Ahmed Sheikh concluded that Pakistan needs reforms that expand the tax net and stop leakages, but not at the cost of undermining industrial growth. “We need policies that support production, investment, and exports. The government must ensure that enforcement tools do not become barriers to business,” he said.
