KARACHI: Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that the tax structure on tea should be improved and five percent withholding tax should be reduced to two percent across the country as some elements in erstwhile FATA, PATA, and AJK are misusing zero tax regime, distorting the market.
Uniform taxation will promote documentation, improve revenue, provide a level playing field and develop this sector, he said.
Mian Zahid Hussain said that tea should be declared a food item to provide relief to the masses facing high food prices.
He said tea has become a necessity therefore taxes on this item should be reduced in the upcoming budget.
Tea is also used by the poor with roti as meals, as increasing inflation has eroded their buying power, he said.
He said that local production should be increased to save foreign exchange and bring the prices down. He said that tea consumption and its import is increasing while smuggling continues despite a reduction in it.
Copyright Business Recorder, 2021