Staff Reporter
Karachi
Pakistan Business Council (PBC) has spotted that various tax laws are depressing investment in the country. The council recommended measures for promoting industrialization, growth and job creation. PBC in proposals for budget 2020/2021 said that at present, new local/foreign investors are reluctant to invest in manufacturing industry of Pakistan due to various impediments including collection of sales tax (10 percent upfront plus 3 percent minimum value addition plus 7 percent Postdated cheques) and income tax 5.5 percent at import of plant and machinery/ spare parts in addition to various other taxes and levies thereafter. The PBC proposed new entry number 1(viii) be inserted in column number 2 of the Table specifying rate of tax at import stage as given in Part-II of the 1st Schedule to the Income Tax Ordinance, 2001 as follows: “(viii) industrial undertakings importing Plant and Machinery and spare parts” The PBC further said that the current rate of minimum tax is 1.5 percent, this tax on turnover is impacting the sustainability of industries especially in the light of current crises. The provision under which the minimum turnover tax is charged.
