Business community hails Govt decision to reduce turnover tax and WHT to 0.25 percent for high-volume sector
- He urged FBR to rationalize tax rates in consultation with chambers of commerce and Industry and other trade bodies.
ISLAMABAD: President, Islamabad Chamber of Commerce and Industry on Tuesday welcomed the positive decision of the government to reduce the WHT from 4.5 percent and 2.5 percent to 0.25 percent and turnover tax from 1.5% to 0.25 percent for entrepreneurs.
Talking to a delegation of Chainstore Association of Pakistan (CAP), President ICCI Sardar Yasir Ilyas Khan hoped that the tax department would make reductions in other high taxes that would bring down the cost of doing business and help in generating more economic activities.
He was of the view that high tax rates and complicated tax system were the major hurdles in promoting business and investment activities up to the real potential of the country.
He urged FBR to rationalize tax rates in consultation with chambers of commerce and Industry and other trade bodies.
He said tax-to-GDP ratio was quite low and one of its main reasons was high tax rates that were encouraging tax evasion in the country.
Therefore, rationalization of taxes was the way forward that would help in broadening the tax base and improving the overall tax revenue of the country as with low tax rates, more people would come into the documented economy.
He urged the government to focus on formulating a new tax strategy to give a clear direction to the business sector so that businessmen could make plans for business expansions and make new investments with more confidence.
ICCI President took CAP delegation on board for organizing Islamabad Shopping Festival in the coming months and invited them to take active part in this important event.
The delegation assured that they would participate in the Festival by making sure that all 200 of their retail members would extend all possible cooperation and would participate in the event.
Speaking on the occasion Tariq Mehboob, Chairman CAP also discussed options for making collaborative efforts to resolve the key issues of the business community and push the government for formulating more conducive business and economic policies.
The CAP delegation informed that they have held productive meetings with FBR and FBR has reduced the WHT from 4.5 percent and 2.5 percent to 0.25 percent and turnover tax from 1.5% to 0.25 percent for retailers, wholesalers, distributors, and dealers of FMCG, sugar, cement, edible oils and fertilizer sectors.
He said that it would provide great relief to the business community of these sectors and help in accelerating the pace of business activities.