ICCI for introducing fix tax regime

ISLAMABAD: The Islamabad Chamber of Commerce and Industry has urged  the government for making categories of traders and announce fixed tax regime for them to facilitate them in discharging tax obligations.

Ahmed Hassan Moughal, President ICCI said that Finance Bill 2019-20 had imposed many taxes on traders due to which they were protesting against tax measures across the country.

He urged the government for announcing category-wise fixed tax regime for traders that would promote tax compliance in trading community and help removing tax revenue of the government as well.

He was of the view that fixed tax regime would minimize interaction between taxpayers and tax collectors and eliminate the chances of corruption.

ICCI President said that Finance Bill 2019 has bound manufacturers, importers, distributors and wholesalers to write CNIC numbers of purchasers on bills and also collect the amount exceeding Rs 50,000 through cheque.

He said these measures had enhanced the problems for traders and urged that government to withdraw them to facilitate the trading community.

Rafat Farid Senior Vice President and Iftikhar Anwar Sethi Vice President, Islamabad Chamber of Commerce & Industry said that government had bound all commercial importers to write selling prices on imported products while the value addition tax would be collected on retail price.

They said that under the new rules, shopkeepers and traders with sales exceeding Rs 10 million per annum would automatically become withholding tax agents and deduct 4.5 percent tax from the suppliers while they would also submit income tax returns after every six months.

They were of the view that these measures had placed extra burden on traders as they would have to spend lot of time to meet the withholding tax requirements.

The government for promoting ease of doing business for them that would facilitate the growth of business activities and help the economy to recover fast, they added.