KARACHI: President FPCCI Zakaria Usman urged that the government and FBR should adopt a policy of uniform tax rate of 10% on rental income instead of placing the taxpayers in different tax slabs.
He said that different slabs introduced in budget 2013-14 should be abolished because these slabs have opened a window for mis-declaration, corruption and tax evasion. The government should adopt soft policies for collection of revenues through different taxes, he urged.
Due to abrupt increase in the tax on rental income from 10% to 24% approximately, the rentals of the warehouses have been increased manifold. The government is well aware about the fact that there is acute shortage of warehouses in Pakistan.
The businessmen and traders have to get the warehouses on rent to procure and store their goods/stuff. In view of the increased rate of income tax, the landlords of the warehouses have enhanced the rent due to which the cost of doing business is automatically increased and ultimately the end consumer has to bear this cost.
