KARACHI: President of the Karachi Chamber of Commerce and Industry (KCCI), Abdullah Zaki has informed that Federal Finance Minister Ishaq Dar, after carefully listening to various suggestions pertaining to forthcoming budget during a meeting at FBR House in Islamabad, assured that all these suggestions will be further discussed with Chairman FBR so that they could be considered in the forthcoming budget.
Abdullah Zaki said that the meeting was held in a very candid atmosphere and thanked Federal Finance Minister for promptly responding to the pleas of the entire business community of Pakistan by taking them on board in the budget making process.
He also welcomed Finance Minister’s desire to hold another similar meeting soon with the Presidents of all Chambers of Commerce across the country to further review business community’s suggestions and seek ways and means of how to create an enabling business environment and enhance revenue.
President KCCI said that keeping in view the positive response of the present government and the support being extended by Federal Finance Minister, the entire business community of Pakistan is fairly optimistic about a pro-business budget this year, which will certainly pave way for industrialization and the economic prosperity of the country.
Besides President KCCI, Abdullah Zaki, BMG Vice Chairman Zubair Motiwala and Chairman of KCCI’s Special Committee for Budget Proposals, Qamar Usman, the meeting was also attended by President Islamabad Chamber Shaban Khalid, President Rawalpindi Chamber Dr. Shimail Daud Arain, President KPK Chamber Zahid Ullah Shinwari, President Faisalabad Chamber Engr. Sohail Bin Rasheed, Vice President Lahore Chamber Kashif Anwar, President Quetta Chamber Muhammad Asim Siddiqui and President Gujranwala Chamber Sheikh Nouman Salahuddin.
Representatives of Pakistan’s business community from various regions of the country underscored the need to effectively deal with pressing issue of harassment being suffered by the taxpayers. In this regard, taxpayers should not be harassed at any stage and should be allowed to appear before the competent authority twice prior to any action against taxpayer. Seeking access to bank accounts, conducting raids and lodging FIRs should only be done when the taxpayer loses his case after an appeal, they said, adding that the spirit should be to amicably settle issues with the consent of chambers.
Chambers’ Presidents further suggested that all Sales Tax refunds of up to Rs2 million should be cleared whereas all Customs Rebate Claims related to Small & Medium Enterprises (SMEs) should also be settled.
They also pointed out that Alternate Dispute Resolution Committee (ADRC) needs to be revived and representatives of various chambers’ must also be involved in this important committee at city level.
Chambers’ President also stressed that a roadmap should be defined to gradually bring down Sales Tax to single digit in the next three years and this reduction in Sales Tax should begin from current year.
Referring to a particular suggestion by Federation of Pakistan Chamber of Commerce & Industry (FPCCI) in which imposition of 5 percent sales tax has been suggested on exporters, Presidents of all chambers said that this suggestion was unacceptable as it will raise the cost of doing business and terribly affect the export performance of the country. The export sector must be exempted from such a tax as no country around the world imposes such tax on exports.
They said that commercial and industrial importers of raw material must be treated equally in order to provide a level playing field while corporate tax should be brought down to 30 percent.
It was further suggested that the accumulated value of tax at import should be at 35 percent which should include duties, sales tax, income tax and value addition.
It was suggested that either immunity from audit be provided to commercial importers or 3 percent value addition be removed. The tax system has become extremely complicated due to additional tax and 1 percent on unregistered persons. The responsibility of tax collection from unregistered persons should not be given to registered persons whereas sales tax withholding of the taxpayer should also be taken back and SRO pertaining to 0.5 percent income support levy should be withdrawn, they added.
Expressing concerns over high duties, sales tax and other taxes on healthcare products, Chambers’ Presidents said that duties and taxes on all healthcare products need to be brought down.