TEXTILE exporters, dairy, telecom and property tycoons have asked the government to rationalize the tax burden, including abolishing the super tax and reducing withholding tax (WHT) rates in the upcoming budget.
During a meeting of the Senate Standing Committee on Finance, All Pakistan Textile Mills Association (APTMA) recommended the removal of super tax and rationalization of withholding tax on exporters, towel manufacturers wanted restoration of zero-rating status, Telecom operators asked the Government to abolish custom duty on import of 5G equipment and reduction in advance withholding tax and Pakistan Dairy Association called for reduction of sales tax on milk from 18 to 10%.
Every year, the Finance Ministry and other relevant institutions initiate a process to consult all stakeholders on different aspects of the budget but unfortunately most of the genuine demands of the industry are ignored and as a result both the manufacturers and consumers suffer a lot. Regrettably, the budget-making is based on the traditional approach of maximizing tax collection than to encourage production and exports as well as to provide relief to the common man. A case in point is levy of 18% GST on milk and fruit juices, which badly impacted sales and also deprived people of the opportunity to buy these items at affordable rates. Similarly, the Government has imposed massive taxes on the telecom sector affecting its profitability and growth. Again, the authorities concerned have all along been expressing their determination to bring down the cost of doing business but instead it continues to surge mainly because of the governmental actions, which need to be reviewed immediately if we really want Pakistan to stand on its own feet economically.
