KARACHI: In a meeting with finance minister, The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) president Mian Nasser Hyatt Maggo apprised the new head of prime minister’s economic team on issues being faced by the businesses, industries, and trade community of Pakistan.
He pointed out a number of reasons including the required paradigm shift in taxation structure towards the need of recovering the ailing economy. Finance Minister Shaukat Ahmed Tarin, during the meeting admitted that much needs to be done and the measures have to be radical and sustainable incremental changes in consultation with the business community.
During the meeting, finance minister referring to the presentation sent by FPCCI on ‘Reduced Taxes for Accelerated Growth and Enhances Tax Revenue,’ said the presentation has been seen by him and it has merits for due consideration which will be addressed on ground footing, with continuation of consultancy.
The finance minister further appreciated the tax policy and principle concept given in the presentation given by FPCCI while pointing out his differences on proposed reduction in consumption taxes which is large contributor to the accumulated taxation. He further took the notice of presentation containing proposed tax simplification and reduction proposals.
On the various tax rates proposed by FPCCI, he said these can be further discussed for its outcome but however suggested Sales Tax rate of 5 percent needs to be enhanced to 7-8 percent as the present sales tax rate of 17 percent is already too high for promoting the economic activities and broadens the tax base. On custom duties, the minister said the proposed rate of 5 percent across the board needs to be split for import of finished goods at 10 percent for due tariff protection. On few of the slides presented during the meeting by FPCCI, finance minister assessed these as receptive towards favorable consideration.
Mian Nasser Hyatt Maggo discussed the need of giving due representation to FPCCI nominees on all boards and councils constituted for considering the ease of doing business and improving competitiveness of economic produce to bid more exports and reduce imports.
Mian Nasser Hyatt Maggo invited the attention of finance minister on the present taxation system in which the tax collection and adjudications is performed by same tax officials in negation of constitutional requirement by which tax adjudication functions have to be separate and independent with no cross bordering of the same officials in collection, audit, recovery and adjudication. The FPCCI chief further invited the attention towards the need of immediate holding in abeyance of CNIC conditions for buyers in order to collect more sales tax up to June; he also asked for allowing sales to unregistered persons as already sales tax collections have come down due to this reason and the situation of likely to collect more sales tax will happen by withdrawing this restriction of sales to unregistered persons up to June 2021.
Shaukat Tarin assured FPCCI that he will advise Chairman FBR to swiftly start a consultative process with FPCCI on reduced taxes for accelerated growth and enhancement of tax revenue presentation which has been received by him and he has also scanned the same. He also announced that he will soon be visiting FPCCI head office in Karachi. He also offered to FPCCI President to nominate one member each to twelve EAC groups; which are making recommendations on economic, financial, business, and sectoral issues. The meeting was also attended by Abdul Razak Dawood, Dr. Waqar Masood Khan and Chairman FBR along with senior officials.—PR
Copyright Business Recorder, 2021
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