KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that Federal Board of Revenue (FBR) has deliberately proposed such amendments to tax laws through Finance Bill 2017 to create gulf between the government and private sector.
Zubair Tufail, President, FPCCI at a press conference rejected budget recommendations and said at a joint meeting held a day earlier of entire business community unanimously opposed the budget 2017/2018.
He said that it was bureaucratic budget and FBR had not bother to promote business activities in the country.
Tufail said that the business community had agreed on an 11-point demands, which the government should accept before approving the budget from the parliament likely on June 14, 2017.
The 11 points has been sent to the prime minister and the finance minister for consideration. FPCCI president said that it was agreed by the business community that in case such demands were not accepted then extreme measures would be taken to protest changes in the budget.
The points raised by the business community are included:
- Refunds of sales tax (for which RPOs were issued till April 30, 2017) and income tax should be paid before August 14, 2017, as announced in the budget speech.
- Turnover tax should be kept at one percent instead of 1.25 percent proposed for tax year 2018.
- Super tax should be withdrawn as it was badly impacting large companies and enterprises.
- Withholding tax on commercial and industrial imports to be implemented as agreed in the finance committee of national assembly by FBR chairman and stakeholders.
- Two percent further tax on sales to unregistered persons should be withdrawn.
- Commercial importers should be exempted from sales tax and income tax audits, as they pay 17 percent sales tax plus 3 percent value added tax and six percent income tax in advance at clearance stage.
- Fixed tax regime for builders and developers should be continued as per last year’s agreement with stakeholders.
- 10 percent tax on undistributed profits should be withdrawn.
- FBR officers should not raid premises of any taxpayer, unless 15-day notice is issued for the payment or reply by taxpayer. If FBR not satisfied with the reply, action may be taken after informing trade association or chamber.
- Suspension of circular No. 14 of October 06, 2011 allowing income tax exemption on making sales tax to effected areas of KPK.
- Reducing electricity and gas tariff up to 25 percent for industries in order to boost exports.
