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FPCCI has proposed bringing down the sales tax to single digit
FPCCI has proposed bringing down the sales tax to single digit

FPCCI proposes bringing down sales tax to single digit in Federal Budget 2019-20

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its Federal Budget 2019-20 proposals has suggested bringing down sales tax rate to single digit from 17 percent.

 

 

 

Engr. Daroo Khan Achazai, President FPCCI, addressing a press conference at Federation House Karachi on Wednesday, regretted that as per past practice the government did not undertake the consultative sessions with FPCCI regarding the upcoming Federal Budget 2019-20.

This practice was useful and effective measure for coming up with budgetary proposals based on input from the real stakeholders. However, FPCCI has done its homework.

While discussing the current economic situation, Engr. Daroo Khan Achakzai President FPCCI showed his serious concern over the rising policy rate, increase in petroleum product prices, decline in foreign investment, and devaluation of Pakistan rupee etc.

He stated that government is presently facing shortage of tax revenue and projected that economic growth rate may be declined to 3.7 percent which my enhance unemployment rate and poverty in Pakistan.

He informed that as per practice, FPCCI formulated Budgetary Advisory Council who prepared Federal Budget Proposals with the consultation of members’ trade bodies.

The objectives of FPCCI Budget proposals are revamping taxation system, documentation of economy, employment generation through industrialization, promoting a responsive and equitable taxation system, infrastructure development and trickledown effect of the fiscal space to the grass root level.

Engr. Daroo Khan Achakzai added that government should announce one time another amnesty scheme which should allow the stakeholders to declare their domestic and foreign assets at minimum rates.

He said the government should also ensure that after declaration of assets under amnesty scheme the Federal Board of Revenue (FBR) should not ask about the source of income and not conduct any audit or inquiry.

Moreover, FPCCI proposed  to reduce sales tax rate gradually from current 17 percent to single digit, to abolish all duty and taxes on the imports of all machinery, to reduce further tax on unregistered person from three percent to one percent and imposition of taxes on final goods.

He also suggested establishment for export warehouses at border for enhancement of trade with neighboring countries and bringing the agriculture and service sectors into tax net proportionately.

He also proposed to increase the education and health budget for improving human capital in Pakistan.

 

 

 

Zubair Tufail, Chairman FPCCI Advisory Committee on Federal Budget and Former President FPCCI also emphasized on the early issuance of promissory notes and clearance of all refunds including income tax and DLTL etc.

He suggested that government should use the data of domestic and international travellers for identifying potential tax payers and bringing them into tax net.

He underlined the need of promotion of SMEs culture in Pakistan and suggested that the government should formulate mechanism for monitoring consumer goods prices.

While discussing China Pakistan FTA, he proposed that China should give additional market access to agriculture products of Pakistan.

He also recommended imposition of transit trade fee on Chinese trucks as per international practices under CPEC. He also requested the government to stop harassment of business community by NAB and FBR in order to improve business climate of Pakistan.

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