Dar to announce setting up commission for single stage sales tax

ISLAMABAD: Finance Minister Ishaq Dar in his budget speech to announce formation of a commission to deliberate single stage sales tax rate and to revert the field formation of Federal Board of Revenue (FBR) to circle based system, sources said on Monday.
The sources said that at a meeting held last week chaired by Prime Minister to approve the federal budget 2014/2015 had consented on single stage sales tax rate and reforming the FBR field formation on circle based system.
The commission will be comprised nine members three each from Federation of Pakistan Chambers of Commerce and Industry (FPCCI), FBR and technocrats.
The sources said that the prime minister was convinced with the proposals floated by the FPCCI about reducing the sales tax rate to a single digit by eliminating refunds and input adjustment and the proposals of finance ministry/FBR regarding reverting the FBR to old system.
It is learnt that the Prime Minister had directed the minister to constitute the commission to finalize the recommendation and impact on the revenue collection. The sources said that the commissioner would make the proposals by September 2014.
The sources said that the FPCCI had lobbied for single digit sales tax rate for federal budget 2014/2015 but strong opposition from the vested interests the same could not be incorporated.

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