Karachi: Zakaria Usman, President, FPCCI has stated that the business community is impatiently waiting for the Commission of the Government and Anomaly Committee for the budget 2014-15 so that the hardship being faced by the business community due to some harsh and irritant provision of Finance Act may be removed and its overall positive impact on the national economy can be seen.
He further said that the new concept of “Alternative Corporate Tax” is very challenging for implementation, further it will lead to complications between the tax payers and collectors. A recent World Bank global report “Paying Taxes 2014” indicates that the current work load of tax compliances requires 577 hours in Pakistan, which will be further increased.
Zakaria Usman also appreciated that import of textile related machinery is exempted; however, he urged that the current exemption in duties available on those plant and machinery not manufactured locally should not be withdrawn.
The President FPCCI further said that 5% tax levied on Bonus Shares should be removed from the statute because the bonus is derived from the retained earnings of the company which have already been taxed. If this tax remains it will tantamount to double taxation.
Zakaria Usman also emphasized on the justified duties/taxes on the import of auto parts. He said that it is surprising that the auto parts are subject to import duties/taxes on weight basis which is absolutely unjustified. He said that the vehicles are of different capacities and brands. This policy should be revised and duties/taxes should be levied on the basis of units for which the Chairman FBR assured to consider it.
In the matter of GIDC the President FPCCI said that the Government should revisit its decision to enhance the rate of GIDC and keep it on previous rates because this harsh step would only benefit our competitors which will lead to drastic decline in Textile Exports of Pakistan as it will ultimately jeopardize the benefits of GSP Plus.
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