Business community proposes to reduce sales tax to single digit

Business community here on Thursday proposed the government for reducing the sales tax to single digit for promoting trade and business activities in the country.

They said that down ward shift in sales tax would help in reducing the cost of doing business in the country, which would help in industrial growth and create more job opportunities for educated, skilled and semi-skilled labor force in the country.

Talking to APP President Islamabad Chamber of Commerce and Industry Shaikh Amir Waheed said that currently 17 percent sales tax was charged from all products and ICCI has proposed the government to bringing it down to less than 10 percent.

He said that the Federal Board of Revenue (FBR) had requested all the stakeholders to send their sales tax-related budget proposals to the board by January 31, which would be considered to be incorporated in the budget for the fiscal year 2018-19.

ICCI head said that reduction in sales tax to single digit would also reducing the inflation and increasing the purchasing power of common man in the country.

He said that reduction in the sales tax regime would also help to improve and promote business activity, besides flourishing the national economy.

Meanwhile, Senior Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mazhar Ali Nasir said that federation was engaged with government on tax related issues from 2014 and presented different proposals in order to rationalize taxation system in the country.

The FPCCI had also prepared a working paper on sales tax and suggested the government to use this paper and reduce sales tax on 25 products initially and if it would prove beneficial for the government then it should be extended to other products.

He said that finance minister had assured to implement the proposals but the promise was yet to fulfill.

Posted on: 2018-01-18T16:49:00+05:00