Last update: Tue, 03 May 2016 05pm

Budgets: Suggestions


Pakistan National Shipping Corporation (PNSC) has sought amendment to the Income Tax Ordinance 2001 through Finance Bill 2016 to reduce the overall impact of income tax on resident shipping companies in line with the incentives provided in Merchant Marine Policy.
All Pakistan Business Forum (APBF) has started consultations for final preparation of the federal budget proposals for 2016-17. This was announced in a meeting chaired by APBF President Ibrahim Qureshi to finalise the budget proposals. Promoting foreign direct investment (FDI), increasing the share of direct taxes in revenue and lowering the slab of indirect taxes would help achieve key economic targets set for the next fiscal year, he said.
The vegetable ghee and cooking oil industry has proposed Federal Board of Revenue (FBR) to reduce custom duty on imported Tinplate from 20 to 5 percent, Federal Excise Duty (FED) from 16 to 8 percent on imports like sugar (8 percent FED), cut in duty on imported edible oil and reduce withholding tax on imported edible oils in presumptive tax regime mode (minimum mode) from 5.5 to 3 percent in budget (2016-17).
Pakistan State Oil Company Limited (PSO) has proposed to the Federal Board of Revenue (FBR) to specifically exempt withholding tax at import stage on the LNG products in budget (2016-17) by also including the same under clause (56) of Part IV of 2nd schedule of Income Tax Ordinance, 2001, or alternatively the tax rate be reduced to 0.5 percent.
Pakistan Business Council (PBC) has proposed discontinuation of the permanent amnesty schemes; cap on explained remittances beyond a threshold and advance tax collection to discourage 'whitening' in upcoming budget (2017-18). According to the budget proposals of PBC for 2017-18, PBC strongly objects to any tax amnesty schemes or waivers in customs or other duties/levies on smuggled goods as the PBC believes such moves on the part of the government will penalize the formal taxpaying sector.
Karachi Tax Bar Association (KTBA) has proposed to the Federal Board of Revenue (FBR) to bring the rate of sales tax down to single digit. The KTBA in its budget proposals sent to the chairman FBR Nisar Muhammad Khan termed the current rate of sales tax @ 17 per cent with an additional 3 per cent value addition tax on commercial importers as lofty, saying that there was a narrow tax base due to the high rate which induced tax evasion under invoicing, corruption and smuggling.
Pakistan Stock Exchange (PSX) has strongly proposed reduced rate of tax for listed companies which it says will serve as an incentive to the companies for enlistment and documentation of economy in budget (2016-17).