Ijaz Kakakhel Islamabad
A legislative body of Upper House of parliament on Tuesday asked that in upcoming budget 2023-24 equitable tax regime should be initiated, besides providing ease of doing business and reducing the manufacturing cost.
The suggestions were surfaced in the meeting of Senate Standing Committee on Finance and Revenue, which was held here at Parliament House while Senator Saleem Mandviwalla on chair.
The Committee deliberated on the various pre-budget proposals put forwarded by different stakeholders. Ehsan Malik, CEO Pakistan Business Council, apprised that 100 of the most prominent business of the country are generating 40 percent export, in addition to its 20 percent share in GDP and approximately 56 percent tax have been collected from it.
Representatives of Chamber of Commerce and Industries unanimously underscored the need of broadening the tax base of the country and demanded that super tax ranging from 1 to 10 percent on different affluent individuals and companies should be withdrawn. They also highlighted the need of revisiting the Pak-Afghan transit.
Moreover, Dr. Khurram Tariq, President Faisalabad Chamber of Commerce and Industries, maintained that the small business, having turnover of around 150 million rupees should be exempted from computerized balloting audit for sales tax, and an audit of said businesses should be completed within six months instead of preceding for five years. He apprised that the measures will help the small business to flourish and eventually it will enhance their productive contributions.
However, Ahsan Zafar Bakhtawari, President Islamabad Chamber of Commerce and Industries, mentioned that the industries located in the erstwhile FATA is currently exempted from sales tax and the concession is putting steel industries, located in settled areas, at great disadvantage. He suggested that an equitable environment should be created by withdrawing the said exemption so that the industries of both sides could flourish at same pace.
Discussing the pre-budget proposals, representatives of Karachi chamber of commerce and industries stated that three percent value added tax which is being charged on raw materials at import stage is unjustifiable and it should be revisited.
