RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) President Mian Humayun Parvez urged the Federal Board of Revenue (FBR) to introduce reforms and revision in sales tax structure.
In a statement issued here Monday he said there is a need to bring changes in the existing structure of sales tax as Pakistan's economy is taking turn.
The key export sectors like textile, leather, surgical goods, sports goods and carpets require a big revamp in its sales tax structure for the upcoming budget 2016-2017, he added.
Currently, FBR is charging 3% on industrial raw material, the locally made finished textile items are being charged at the rate of 5% and imported textile articles are chargeable to sales tax at the rate of 17%.
Similarly, retailers of textile sector are chargeable to 5% and commercial importers are paying sales tax at 1% on value addition in addition to 3%.
The issue of discrimination between commercial importers and industrial importers always went to a heated debate each year, he added.
The President said that exporters are facing problems due to non payment of refunds (sales tax, duty drawback) and the issue to be addressed on priority basis.
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