MULTAN: Multan Chamber of Commerce and Industry (MCCI) has submitted to the Federal Board of Revenue (FBR) a set of proposals for consideration and incorporation into the federal budget for 2022-23.
MCCI stated that these proposals would help increase economic activity and widen the tax net thereby increasing the government revenue. MCCI President Khawaja Muhammad Hussain said that the proposals had been categorized into income tax, sales tax, Excess of FBR Powers and import and export with a special focus on the documentation of the economy.
Currently, the rate of sales tax is 17 percent which is higher in the subcontinent, the rate should be reduced to single-digit, he added. He strongly urged the government to revert back the taxes imposed in the mini-budget 2022 earlier in January this year by slapping a 17% tax at the import stage on nearly 80 items. The majority of these items are essential goods and do not fall in the category of luxury goods. He further added that it is very unfortunate that the Government has imposed 17% GST on raw materials of the medicines; this has added more misery among the poor masses. Khawaja Muhammad Hussain said that a 17 percent sales tax has been imposed on the import of machinery for renewable energy including solar, wind and nuclear power generation. This is contradicting the Government’s policy on renewable energy as well as contrary to the global direction.
Pakistan have only around 3 million people who are filing their income tax returns, out of which one million filed as zero. It is proposed that all the persons having industrial or commercial electricity or gas connections should be brought into the tax net. This is the era of technology, it is recommended to consolidate the entire Provincial and the Federal sales tax returns, he added. The robust linkage between the Government and private sector boosts the economy, creates a friendly environment, generates employment, attracts investment and helps in the growth of the SME sector.
While showing grave concerns about the current economic condition of the country, President Khawaja Muhammad Hussain demanded that “All the political parties should sign a charter of the economy and follow a single economic manifesto that should be evolved in consultation with the stakeholders’ President strongly recommended that harassment on the account of tax collection, registration and assessment must be stopped. The excesses (Section 38) have ruined the business activities and also damaged the repute of the businessmen. It is recommended that permission from Board is necessary and rules be made for the requirement to exercise this provision. He said that the treatment of the taxpayers under the grab of reduction in sales is not acceptable. The taxpayers are paying taxes from their hard-earned amounts, in rewards, the sealing of premises, is a deter.
It is highly recommended that the sales tax may be imposed on a fixed basis and may add this industry to the 9th schedule of the Sales Tax Act, 1990 basis on the electricity consumption. This will reduce the documentation cost and will increase the revenue multi times. There is an urgent need to improve the trust level between the taxmen and the tax collector. MCCI recommends that taxpayers shall be given respect. Higher taxpayers are given awards and recognitions. Discounted rates besides dedicated treatments for the taxpayers in the Hospitals, Airports, Schools/colleges/universities, Police and Privileged cards be offered.
