Budget: fixed tax scheme for small traders very likely

ISLAMABAD: Federal Minister for Finance and Revenue, Miftah Ismail Saturday agreed, in principle, to introduce a fixed tax scheme for small traders and resolve all taxation-related issues of business and trade including the condition of providing a Computerized National Identity Card (CNIC) numbers of the unregistered buyers.

Ismail held a meeting with a delegation of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) led by its President Irfan Iqbal Shaikh at the Finance Division, here.

The FBR chairman and senior officers also attended the meeting.

Ismail said the government will present a pro-people and business-friendly budget by incorporating viable suggestions from all the stakeholders.

Sources told Business Recorder that the FPCCI presented the case of the small traders across the country. The finance minister agreed to introduce a fixed tax regime for small traders with simple documentation.

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It was pointed out that if the businessmen make sales to unregistered persons, the CNIC of the consumers has to be provided otherwise, the corresponding amount of input tax would be disallowed.

The FBR should not create problems for the business community by seeking CNICs of the unregistered buyers, as a penalty in the form of three percent extra sales tax has already been charged besides 17 percent sales tax, the FPCCI informed the meeting.

There is a likelihood that the said condition may be withdrawn in the upcoming budget, the sources said.

According to the sources, the meeting also discussed the possibility of the export of surplus sugar. The authorities may agree on the export of surplus sugar.

Ismail welcomed the delegation and shared that macroeconomic stability is the prime concern of the present government. Therefore, the government is strictly committed to ensuring financial discipline through effective and farsighted policies for enhancing the overall level of growth in the country.

The FPCCI president congratulated the finance minister on undertaking the new role as federal finance minister and presented various proposals for consideration in the Federal Budget 2022-23. Multiple measures were suggested by the FPCCI members for bringing in greater efficiency in the industrial and agriculture sectors.

They also apprised about some issues related to taxation faced by the business community in the country. Further, they requested the finance minister to consider their proposals and address the stated issues.

The finance minister acknowledged the effective role of the FPCCI in acting as a bridge between the government and the traders. The current economic situation was highlighted during the meeting. The finance minister commended the budgetary suggestions proposed by the FPCCI members for various sectors of the economy.

The chair shared that the current government is aiming at an inclusive and sustainable economic growth by presenting a pro-people and business-friendly budget; therefore, the suggestions of all the stakeholders will be given due regard.

The FPCCI delegation thanked the finance minister for listening to their proposals and assured their support and cooperation in enhancing economic stability in the country.

Copyright Business Recorder, 2022