One shop furniture showrooms having one NTN should not be treated as Tier-1 retailers, says LCCI Chief

LAHORE (MNP) President of the Lahore Chamber of Commerce & Industry Kashif Anwar has said one shop retailers and one shop furniture showrooms having one NTN should not be treated as Tier-1 retailers.

He said that it is impractical for this industry to get themselves register as Tier -1 retailer and the tax authorities are sending warnings requiring furniture stores for registration as Tier-1 retailers.

He was speaking to a delegation of Pakistan Furniture Association led by its President Jaffar Hussain here on Thursday.

President LCCI said that furniture small retailers should not fall in the definition of sub-section 43 A of section 2 of the Sales Tax Act, 1990, because furniture small retailers purchases furniture from unregistered manufacturers of the cottage industry, so input invoices cannot be provided.

He said that furniture sector does not fall in the category of fast-moving consumer goods (FMCG) and are meant for display of the bulky pieces of furniture and getting the order from the consumer rather than for retail sales.

Kashif Anwar said that furniture shops and showrooms require an area of more than 2000 Square feet hence an anomaly is there that the furniture shops are considered retailers and are required to be registered as Tier-1 Retailer vide Sales Tax Act, 1990 and one shop retailers having one NTN should not be classified as Tier-1 Retailer.

Kashif Anwar added that due to current economic situation, the industry is in peril and is on the verge of closure. These types of decisions, he said, will further escalate the situation and will force this sector to collapse.

President Furniture Association Jaffar Hussain proposed that the condition of a covered area must be removed and small furniture retailers may be brought into the category of fixed tax as proposed in the Budget 2022-2023 whereby fixed tax shall be charged. He also proposed that the a fixed tax imposition on the basis of area as well.

Jaffar Hussain further said that that the furniture showroom covering area up to 5000 square feet should pay fixed sales tax amount Rs 5000 a month. Similarly covering area above than 5000 square feet up to 10000 square feet should pay fix tax amount Rs 10000 a month and above than 10000 square feet up to 15000 square feet should pay fix tax amount Rs 15000 a month.

President LCCI Kashif Anwar further said that It will protect the artisans, laborers and owners of furniture shops from further harassment and their business will be safe. It will also preserve the hand-crafted trade throughout the country.