KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in its budgetary proposals, has urged the Federal Board of Revenue to reduce standard rate of minimum tax from 1.25 percent to 1 percent and to enhance the threshold of turnover for charging of minimum turnover tax from Rs 10 million to Rs 50 million.
It has also emphasized on exclusion of the companies having a gross loss position for the year from the purview of minimum tax by restoring the position of law prior to Finance Act-2016, allowing them to carry forward the minimum tax paid in the year of loss.
These budget proposals were prepared under the Chairmanship of Senior Vice President Syed Mazhar Ali Nasir, said a FPCCI statement here on Thursday. FPCCI maintained that high tax rate encouraged tax evasion and corruption.
It argued that the increase in exemption limit of turnover tax from Rs 10 million to Rs 50 million would help the companies in true declaration of turnover. Similarly, giving exemption from payment of minimum tax to the companies, which are in the gross loss situation, would provide them relief.
