KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has urged the Federal Board of Revenue to take stakeholders into confidence about the new sales tax and federal excside return regime.
"The Chamber has written to FBR that the applicability of the new sales tax and federal excise return should be deferred unless all the stakeholders including trade bodies, associations and KCCI being the only representative of tax payers contributing 70% to the national exchequer," the KCCI said in an announcement here on Tuesday.
The notification envisages application of the amended return from July 2011.
The Chamber delegation led by its vice president Junaid Makda also held a meeting in this regard with the FBR authorities recently in Islamabad.
"The Chamber has also stated that changes, such as requirement of CNIC, HS Code and monthly closing and reconciliation of stock, if needed, should only be applicable from the next tax period after the amendment is made in consultation with the stakeholders."
It further maintained that superfluous changes in Sales Tax and Federal Excise Return regime would not only increase the cost of doing business but will also result in decreasing the sales volume and consequently the collection of Sales Tax by FBR as well.
Over 60 percent of revenue collection made by FBR is through indirect taxes and Sales Tax constitutes a major fraction, the KCCI pointed out.
"The Chamber is actively pursuing the issue of Sales Tax Return and is in close liaison with FBR officials to rectify all problems and for that reason, extension in filling of return and depositing sales tax liability has been granted by FBR," it added.
Copyright APP (Associated Press of Pakistan), 2011
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