Single digit sales tax may change business history

KARACHI: Syed Mazhar Ali Nasir, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday demanded reform in existing sales tax regime.

He emphasized reduction of sales tax to single digit in the upcoming federal budget for the fiscal year 2014-15. He said that this year, FPCCI is formulating recommendations for the federal budget which is history in the making.

Nasir demanded reduction in sales tax to single digit (non-refundable and non-adjustable at import and manufacturing stage) in Pakistan. This proposed single digit sales tax will eliminate malpractices in refund claims and input tax which will reduce cost to the exchequer.

The FPCCI is strategically working on the single rate of sales tax and expect FBR to join hands in working to achieve this goal which would lead in the generation of Rs 1500 billion in the next financial year 2014-15. The main advantage of reducing sales tax to single digit would be giving relief to the common man, especially to the low and middle income group by reducing the inflation.

He said that lower rate of sales tax would increase the revenue for the government and discourage the corrupt and malpractices in input and adjustment. It will give industry a breathing space against the menace of smuggling which is wide spread in the country. The simple procedures in sales tax will give the government an opportunity to work more efficiently within the sales tax department.

He added that most of our proposals for incorporation in the federal budget were related to this important segment which was a pre-requisite for survival and expansion of Industry. “We also have demanded such incentives that could not only transform the existing infrastructure into an efficient network but also bring radical changes in the society through improved socio-economic indicators. We also advocated for equitable taxation while emphasizing on expansion of tax net rather than putting more burden on the existing taxpayers.

Nasir further informed that FPCCI team was working on shadow budget which would be presented to the finance ministry and FBR team by President FPCCI Zakaria Usman shortly which would be a revolution in the history of trade and industry of Pakistan.

The post Single digit sales tax may change business history appeared first on Pakistan Press International.

Leave a Reply