KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has raised serious concerns over the increasing complications in filing sales tax returns, citing newly introduced formats and technical glitches as significant obstacles for taxpayers, particularly due to the complex structure of the newly implemented Annex H1 and Annex J.
In a formal letter addressed to Rashid Mehmood Langrial, Chairman of the Federal Board of Revenue (FBR), PCDMA Chairman Salim Valimuhammad and Danish Saleem, Advisor to the Subcommittee for Sales Tax and Income Tax, pointed out that the newly uploaded Annex H1 by the FBR was causing confusion and compliance issues due to unclear guidelines, frequent regulatory changes, and persistent portal glitches.
“Taxpayers are finding it increasingly difficult to reconcile withholding statements and comply with filing requirements due to the overly complex design of Annex H1,” said Salim Valimuhammad. “The situation is further aggravated by the form’s calculation mechanism, which mistakenly subtracts Sales Value instead of Cost Value.”
PCDMA Chairman emphasized to the FBR the need to allow taxpayers to voluntarily enter the Cost Value before submission of returns, to ensure accurate reporting and avoid erroneous assessments, delayed refunds, or penalties.