Sheikhupura Chamber of Commerce and Industry (SCCI) has urged the government to reduce flat rate of taxation on limited companies from 35 percent to 25 percent and this reduction to small companies be extended irrespective of their date of incorporation.
In its budget proposals, the Chamber has proposed to the Federal Board of Revenue (FBR) authorities to encourage the installation of equipment and machinery for the treatment of waste products and allow a reduction of 100 percent in tax in the shape of depreciation.
To provide the manufacturing sector the technical staff in different trades, tax reduction be proposed for the establishment of the technical institutions for the smooth availability of the technical staff to the manufacturing sector. It further proposed that a tax reduction in shape of holiday period and/or reduction in tax rates may be granted to the small and medium entrepreneurs for a sustainable economic growth.
The Chamber also proposed that in order to encourage the private sector in contributing to the society in provision of civic amenities, a reduction in tax be allowed to those industrial units, who construct roads and sewerage systems for general public in the industrial areas or otherwise. It was further proposed that since the banking sector had increased the mark-up rate, the industrial growth was not possible with this exorbitant ration, so it should be reduced for a sustainable industrial growth.
Moreover, the Chamber suggested to the FBR that to enable the small commercial sector of the country for documented economy, the withholding tax on cash withdrawals from banks may also be abolished in the budget 2008-09.
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