Single digit tax rate to promote businesses, enhance revenue: Nauman

Staff Reporter

Chairman Pakistan Industrial and Traders Association Front (PIAF) Mian Nauman Kabir has called upon the government to reduce the existing 17 percent sales tax rate to the single digit in the forthcoming budget 2021-22, as it would help promote the business activities, besides improving tax revenue as well in the country.

The PIAF Chairman, in a joint statement with vice chairman Javed Siddiqi here on Saturday, said that the main advantage of reducing sales tax to single digit will be giving relief to the common man, especially to the low and middle income group by reducing the inflation.

He said that the lower rate of sales tax will increase the revenue, and discourage malpractices in input and adjustment.

It will give the industry a breathing space against the menace of smuggling, which is widespread in the country.

The simple procedures in sales tax will give the government an opportunity to work more efficiently within the sales tax department.

Mian Nauman Kabir also demanded incentives that would transform the existing infrastructure into an efficient network and bring radical changes in the society through improved socio-economic indicators.

He observed that the government has not taken stakeholders onboard to discuss the upcoming budget.

The objectives of our budget proposals should be revamping taxation system, documentation of economy, employment generation through industrialization, promoting a responsive and equitable taxation system, infrastructure development and trickledown effect of the fiscal space to the grass root level.

The PIAF fully supports the recommendation of FPCCI and LCCI to reduce sales tax rate gradually from current 17 percent to single digit, to abolish all duty and taxes on the imports of all machinery and imposition of taxes on final goods, he added.

Mian Nauman also suggested establishment of export warehouses at border for enhancement of trade with neighboring countries and bringing the agriculture and service sectors into tax net proportionately.

He also proposed to increase the education and health budget for improving human capital in Pakistan.

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