ISLAMABAD: Federation of Pakistan Chambers of Commerce & Industry (FPCCI)’s presidential candidate Engr. Daroo Khan Achakzai on Thursday said interest rate hike and devaluation has created problems for the masses and business community, therefore, the government should reduce tax to provide relief.
He said that a reduction in the sales tax has become necessary to reduce the cost of doing business which will help the masses are reeling under runaway inflation.
Engr. Daroo Khan Achakzai said that a simplified sales tax regime would revolutionize the economy, improve tax compliance and minimize corruption.
He noted that the existing sales tax system has ambiguities resulting in issues like fake and flying invoices while reforms will bring a pleasant change in the business environment.
He said that non-refundable and non-adjustable sales tax will help businessmen save a lot of time and billions of rupees while saving around Rs200 billion for the government.
Simplified sales tax will eliminate malpractices in refund claims, input tax and reduce administrative costs in the FBR while providing relief to the common man, especially to the lower and middle-income group.
The business leader said that the government would be able to spend more on developmental projects and decrease reliance on borrowing as tax theft and smuggling would be reduced substantially by introducing reforms.
Simplified sales tax regime will result in the expansion of tax net rather than the prevailing practice of putting more burden on the existing taxpayers, he said.