KARACHI: Syed Mazhar Ali Nasir, Acting President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday demanded for 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.
Syed Mazhar Ali Nasir, demands reduction in sales tax to single digit (non-refundable, 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 the FBR to join hands in working to achieve this goal which will 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 will 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 will 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 are related to this important segment which is a prerequisite for survival and expansion of Industry.
We also have demanded for such incentives that could not only transform the existing infrastructure into an efficient network but also bring radical changes in the Society through improved socioeconomic indicators.
We also advocated for equitable taxation while emphasizing on expansion of tax net rather than putting more burden on the existing taxpayers.
Syed Mazhar Ali Nasir further informed that FPCCI team is working on Shadow Budget which will be presented to the Finance Ministry and the FBR team by the President FPCCI Zakaria Usman shortly which will be a revolution in the history of Trade and Industry of Pakistan.