PESHAWAR: The Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI) has also given proposals for budget 2015-16 and urged the government to increase the tax base by bringing all sectors in tax-net.
The KPCCI also asked the government to reduce tax rates, particularly sales tax rate, to attract investment and reduce cost of business in the upcoming fiscal period. The chamber, in its budget proposals shared with the media, said the agriculture along with a number of other sectors have still been exempted from all taxes, but the government is continuously putting burden on existing taxpayers by levying a number of taxes on them.
Despite the population growth, the FBR has yet to expand its tax-base. So it was need of the hour to widen the existing tax-net by brining all sectors in it, the KPCCI proposal suggested. The chamber has also presented proposals regarding income, sale taxes, and federal excise laws, suggesting that the government should extend special incentives to registered tax-payers, and investors, making investment in energy sector. Similarly, the KPCCI also proposed the promotion of CINC/NTN for broadening of tax-base.
The KPCCI proposed reduction in tax rates for corporate sector and small and medium enterprises (SMEs) and encouragement of services sector in the field of export. It stated that the commercial banks imposed 0.3 and 0.5 percent tax on withdrawal of Rs50,000, while the KPCCI demanded it should increase to Rs200,000.
KPCCI President Fuad Ishaq, while briefing media on the budget proposals, proposed tax-exemption for next five years under a new financial relief package to terrorism-affected business community of the Khyber Pakhtunkhwa. He said it was also suggested to bring down KIBORE rate to five percent, by conversion markup into subsidised.
The KPCCI chief also mentioned withdrawal of tax-exemptions under previous fiscal relief package by imposing section 113 by Federal Board of Revenue. It imposed turnover tax, under 126f and withdrew the income tax exemption, he said.
Fuad Ishaq said the KPCCI in its proposals also urged the federal government to withdraw its petition in Supreme Court and FBR should abolish section 126f of the income tax ordinance 2001 in order to commence sale-tax refunding of business community under SRO-180 (i) 2011.
The chamber president said the step-motherly attitude was always being meted out to Khyber Pakhtunkhwa, as Regional Tax Office, has imposed sales tax on Textbook Board, saying that according to the 6th schedule, the textbooks and holy Qura’an were exempted of the sales tax.
