According to sources, the representatives of KPK FPCCI proposed that multiple layers of taxes are applicable on business community including federal, provincial and local taxes. There should be only two taxes ie sales tax/VAT and income tax. Sales tax rate be reduced from 17 to 7 percent in upcoming budget. Responding to this, Special Assistant to the Prime Minister on Revenue said that an extensive exercise was carried out on the issue of single digit sales tax. However, our economy is not mature to implement single digit sales tax rate.
Haroon Akhtar patently heard to the budget proposals of the business community and asked them to submit concrete budget proposals to the FBR which should be acceptable to the budget makers.
He assured the business community of KP that the viable budget proposals would be incorporated in the coming budget. The first issue was payment of sales tax refunds to the business community of KPK. Tax authorities assured the business community that the issue of admissible refunds would be resolved on top priority basis. The representatives of tribal areas proposed special package and concessions in payment of electricity bills. Special incentives in the form of lower rate of income tax and sales tax be extended to the business community of tribal areas. On the issue of electricity, the FBR advised the business community to take up the issue with the Minister for Water and Power. If roads of tribal areas are made part of the CPEC project, it would also be beneficial for the tribal areas, sources said.
Sartaj Ahmed Khan of Chitral Chamber of Commerce (CCC) proposed the FBR that the Chitral should be granted special status for payment of duties and taxes keeping in view Chitral geographical location. Former VP of FPCCI Adnan Jalil and chairman FPCCI committee on trade, investment and foreign affairs requested that the banks in KP should increase financing to the business community of KP.
He also proposed that zero-rating facility should be extended to all export sectors and its should not be limited to five major sectors. At the same time, a very strong system of checks and monitoring be placed for zero-rated sectors. Adnan Jalil also talked about the difference between the bank rate and open market rate of rupee verses dollar. Zubair Tufail President FPCCI and Vice President Rashid Paracha also submitted new budget proposals for 2017-18, they added.
Copyright Business Recorder, 2017