Govt to rationalize taxes and duties to increase tax base: FM

June 4, 2021: The Federal Minister for Finance and Revenue, Shaukat Tarin, chaired two separate meetings through video link with the representatives of the Karachi Chambers of Commerce and Industry and the Auto Industry of Pakistan in order to ensure the full participation of the business community in the current budget making exercise.

SAPM on Finance and Revenue Dr. Waqar Masood and Adviser to PM on Commerce Abdul Razak Dawood were also present in both the meetings to facilitate the consultative process before the budget making exercise. The second meeting was also attended by Adviser to PM on Austerity and Institutional Reforms Dr. Ishrat Hussain.

The delegation of the Karachi Chambers of Commerce and Industry was led by Zubair Motiwala along with other representatives of the business community of Karachi.

The participants apprised the Minister of the importance of the mega city in generating 58% of the exportable surplus, its share in employment generation and revenue collection. The representatives of the business community discussed a range of issues including the energy subsidies for export oriented sectors, Tax concessions/ refunds and multiple issues related to cooperation from FBR and facilitation of the small and medium enterprises/exporters. They also requested the Finance Minister to consider the city for a fair share in the development budget.

The delegation of the Auto Industry was led by Mr. Ali Asghar Jamali, CEO Indus Motors. The delegation presented the demands of the Auto Industry for the upcoming budget. They informed the Minister that any additional tax on the automobile can have a negative impact on consumer prices and sales of the automobiles, however, the situation can be improved.

The delegation then requested concessions in sales tax, Federal Excise Duty, Customs Duty and Additional Customs Duty on the cars with the commitment to introduce corresponding decrease in the local prices. They also offered to settle issues pending in courts in an amicable manner and honoring their commitment to the customers for timely product delivery.

The Finance Minister assured both delegations that the government is cognizant of the issues of the business community and is ready to rationalize taxes and duties to increase the tax payer base and remove unnecessary hurdles by FBR in the expansion of the businesses, small or large, for the overall benefit of the economy.

He also said that the upcoming budget will play a major role in export promotion and increasing the footprint of small and medium businesses in the economy and for that all necessary preparations have already been done.

Press Release

Posted on: 2021-06-04T09:49:00+05:00