FPCCI finalizes proposals for the upcoming budget; seeks reduction in tax rates | CustomNews.pk

FPCCI finalizes proposals for the upcoming budget; seeks reduction in tax rates

KARACHI: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has finalized its proposals for ensuing federal budget, and recommended to reduce the tax rates to help increase competitive edge of indigenous products in both local and global markets. FPCCI’s proposals envisage revamping taxation system, documentation of economy, employment generation through industrialization, promoting a responsive and equitable taxation system and trickledown effect of the fiscal space to the grass root level, which would be forwarded to the concerned quarters in a fortnight, a statement said. Elaborating the methodology of the budget proposals exercise, President FPCCI Mian Anjum Nisar stated that the FPCCI, with a consistent commitment to developing and promoting a modern, responsive and equitable taxation system, had formulated the proposals. “The proposals incorporate feedback received on matters related to revenue and taxation throughout the year from our members located across the country and input obtained from our member trade bodies, stakeholders, tax practitioners, knowledgeable people etc., through invitation of proposals, organizing workshops and holding a series of Budget Advisory Council meetings, wherein these proposals were discussed in detail and some contradictory proposals were re-examined and final proposals were redesigned in line with the best interest of the country”. Moreover, the FPCCI would also submit its proposals to meet the challenges being faced by the trade and industry due to outbreak of COVID-19 as its severe and adverse impacts on various aspects of Pakistan’s economy is quite discern, which may lead to negative growth rate, deterioration in current and fiscal balance, disruption in supply chain, increased unemployment etc. Mian Anjum Nisar added, “Macro economic proposals contains long term action plan to boost exports, promotion of branding, enhancing SMEs sector, creating employment opportunities through industrialization and independent tax judicial system”. Zakaria Usman, Convener of the Budget Advisory Council disclosed, said FPCCI proposed to the Federal Board of Revenue (FBR) to reduce the tax rates to help increase competitive edge of indigenous products in both local and global markets. “High tax rates provide incentives for tax evasion and corruption and results in high cost of doing business”. At present the total numbers of NTN holders in Pakistan are over 4 million, however, the FBR has miserably failed to obtain return of income from such NTN holders and increase the number of active taxpayer during the last decade. FBR could not fetch much tax filers, despite prescribing higher withholding tax rates for non-filers. “FBR should conduct a study to find out what has gone wrong that even after penalizing the non-filers, they are happy to pay more by way of advance tax instead of filing returns”. He proposed that it is desirable that measures should be taken to facilitate to those, who are already existing taxpayers and contributing in the national tax pool in all manners, so that they become goodwill ambassador for FBR.
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