KARACHI: President Federation of Pakistan Chamber of Commerce and Industries (FPCCI) Zakariya Usman on Monday congratulated Prime Minister Mian Nawaz Sharif for accepting the proposal of the FPCCI to constitute a Commission to consider its sales tax proposal of single stage, single digit non adjustable sales tax.
Earlier in the Shadow Budget, the FPCCI proposed to the Government to introduce a no input / no refund mechanism in sales tax, which would instantly result in positive cash flow for businesses.
Usman further stated that if the Government agrees to bring the rate of sales tax down to 5% on domestic stage, 8% at Import stage and 0.5% at retail stage, this would go a long way in bringing down the cost of doing business, lowering inflation, providing relief to common man, reducing prices, eliminate corruption and would also put end to smuggling.
He said that Pakistan could never reach to the real tax potential unless fundamental reforms in tax policies and tax administrations were made and tax compliance made easy.
He applauded the bold and visionary decision of the Prime Minister to direct formation of a commission to consider single stage, single digit not adjustable sales tax regime and FBR to revert back to circle based system to reduce tax compliance burden of businessmen and bring about accountability and deficiency in FBR
Usman assures the Government that FPCCI’s five-member commission would closely work with it to put the Country in the right direction and increase the tax base and quantum and at the same time reduce the tax compliance burden on the business community.
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