ISLAMABAD: Federal Board of Revenue (FBR) has decided to consider the proposals of Overseas Investors Chamber of Commerce and Industry (OICCI) to facilitate concerns of foreign investors.
According the OICCI, the key budget proposals of the foreign investors have not been incorporated in budget 2016-17. The chamber also approached Finance Minister Ishaq Dar to seek his attention to address concerns of foreign investors. The main issues included omission of provincial sales tax levied on services from the definition of Input tax. This fundamental change in the sales tax regime, if not revoked, will substantially increase the cost of doing business for all business sectors.
The continuation of Super Tax for another year was also highlighted. This levy is discriminatory as only efficiently governed tax compliant organisations are impacted. Moreover, this is in violation of GoP promise last year that it would be levied only for one year (last fiscal year).
Moreover, change of regime from zero rating to tax exempt and levy of Regulatory Duty on dairy products. It s detrimental for documented sector and favours the undocumented sector. The other issues including Group Taxation and minimum tax on turnover were also raised.
