FPCCI for allowing 100pc adjustment of input tax by removing discrepancy

ISLAMABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday urged the government for allowing 100 percent adjustment of input tax by removing the discrepancy created by Section 8B of Sales Tax Act, which would help in ease of doing business ranking.

In a press statement Mian Nasser Hyatt Maggo President FPCCI said that this restriction not only restrains the taxpayer to claim its legitimate input tax but was also affecting the ease of doing business and thereby increasing the cost of business.

In this regards, FPCCI has already communicated with concerned authorities about such impediments that were negatively impacting economic growth, he said adding that under Section 8B of the Sales Tax Act, 1990 a registered person was not allowed to adjust input tax in excess of ninety percent of the output tax.

He further said that at present global and domestic conditions were completely different as COVID-19 has changed the world economic situation dramatically, adding that most of the businesses struggling for their survival and removing such anomalies would help to promote trade and business.

He said that keeping in view this scenario FPCCI, being an apex trade body of the country should act as a supporting mechanism to both business sector and the government, adding that Advisory Council of FPCCI on Budget finds various laws and regulations that were not generating much revenue on the other hand badly affecting ease of doing business ranking of the country.

Naseer Hayyat further said that FPCCI extends its full support and cooperation to the government which was struggling to improve economic environment under the adverse conditions created by COVID-19.