Last update: Thu, 26 May 2016 05am

Budgets: Suggestions


Lahore Chamber of Commerce and Industry (LCCI) has urged the government to avoid imposing new taxes in the federal budget and resolve the issue of withholding tax for the economic uplift of the country. LCCI President Sheikh Muhammad Arshad while talking to a delegation of various markets, led by Khalid Pervez on Tuesday asked the government to simplify the taxation system and resolve the issue of double taxation.
The government is planning to charge fixed amount of sales tax on sugar from 2016-17 replacing sales tax with 8 percent Federal Excise Duty (FED) on import and local supply stages in coming budget. Sources said on Monday that the proposal under consideration is to fix value of sugar on per kg basis for charging sales tax by sugar mills taking into account standard rate. The sales tax value may be fixed between Rs 50-55 per kg. For this purpose, sales tax may be levied at the standard rate on the basis of fixed value of sugar.
Central Chairman of Pakistan Yarn Merchants Association (PYMA), Muhammad Usman has urged the Federal Finance Minister to save the downstream textile industry.
Finance Minister Senator Ishaq Dar Wednesday chaired a high-level meeting here to review proposals and recommendations on bringing about improvement and changes in the laws regulating the inflow and outflow of foreign exchange in the country, as well as disclosure of assets held abroad by Pakistanis. State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan(SECP), and Federal Board of Revenue(FBR), submitted their separate reports, in the context of Finance Minister''s instructions given earlier on evolving a methodology to plug loopholes in the system that allow tax evasion and illegal transfer of foreign exchange from the country.
Advisor to Prime Minister on Revenue Haroon Akhtar Khan has assured the vendors of computers and computer accessories to contemplate for making their proposals part of the Finance Bill to further regulate the market where the industry guaranteed additional revenue of Rs 1.3 billion annually.
Pakistan Automotive Manufacturers Association (PAMA) in its budget proposal for 2016-17 has urged the government to consider its recommendations regarding exempting the levy of 1 percent extra tax on auto sector, Regulatory Duty on steel products, WHT on exports, duty on dies, tools and machinery, and sales tax adjustment issue for motorcycle dealers.
The All Pakistan Textile Mills Association (APTMA) has put forward budget proposals for fiscal year 2016-17, seeking a special package for textile industry, withdrawal of gas infrastructure development cess (GIDC), Export Re-finance Facility (ERF) and Long Term Financing Facility (LTFF), liquidation of pending refunds, regulatory duty on import of synthetic yarns and fabrics, enforcement of strict regime to control smuggling of fabrics and garments, allocation of special fund for promotion of exports, provision of draw backs of local taxes and levies (DLTL) and specialised schemes including FMS, FPS, MLFPS, IEIS.