ISLAMABAD: Imposition of simplified single digit sales tax regime would revolutionise national economy by simplifying tax compliance and eradicating corruption causing massive loss to the national kitty, a business leader said here on Sunday.
Existing sales tax system is full of ambiguities resulting flourishing business of fake and flying invoices while reforms will bring a pleasant change in business environment which is the goal of government, said President Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain.
Talking to the business community, he said that non-refundable and non-adjustable sales tax at import and manufacturing stage will help businessmen save a lot of time and billions of rupees while saving around Rs200 billion per annum paid by FBR to those who file fake refund claims, he said.
He who has also served as provincial minister said that single digit sales tax will eliminate malpractices in refund claims and input tax and reduce administrative costs in the FBR.
It will give relief to the common man especially to the lower and middle income group by reducing the inflation, increase revenue, provide support to limping industry and trigger industrial expansion providing revenue and jobs, he remarked.
The veteran business leader said that government would be able to spend more on developmental projects and break the begging bowl as tax theft and smuggling would be reduced substantially.
Simplified sales tax regime will result in expansion of tax net rather than prevailing practice of putting more burden on the existing taxpayers. He lauded the decision of the government to reverse unjustified tax exemptions while criticised proposal of FBR to document all business transactions with the help of banks to boost collection.
The proposal can discourage taxpayers, harass investors, increase the size of undocumented economy from current 55 percent, massive withdrawals compromising capacity of banks to finance private sector and increase flight of capital, he warned.
The post Trade: (Single digit sales tax regime to revolutionise economy) appeared first on Pakistan Press International.