KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Mian Mohammad Adrees has unveiled proposals for budget 2015-16 at the Federation House.
Presenting the proposals, the FPCCI president said that to make the upcoming budget business-friendly, the government should slash sales tax to single digits and cut corporate tax.
Adrees said that strong steps and visionary approach can revitalise the country’s economy, which should grow by at least 7pc annually. He suggested raising the country’s tax base so that tax-to-GDP ratio improves from current 9pc, which was 12-13pc in the 80s and 90s.
He added that the proposals had input from all member bodies, including chambers and associations, across the country, and that no proposal clashed with the IMF and World Bank conditions or the goal of increasing revenue collection.
There is a demand to chop the corporate tax rate by 2 percentage points annually to bring it down to 25pc over the next four years from the current rate of 33pc. The individual income tax exemption should be raised from Rs400,000 to Rs600,000.
All incomes including agriculture should be taxed. It has been stressed that the sales tax and income tax return forms should be made simple and standardised so that taxpayers do not have to face the hassle of new tax return forms on an annual basis.
