LAHORE: President Lahore Chamber of Commerce and Industry Kashif Anwar has said that business friendly taxation system could pave way for economic development. LCCI has strong reservations on Tajir Dost Scheme 2024 under SRO 420. All the policies should be formed in consultation with the stakeholders.
He was addressing the conference on economic challenges and their solutions at Lahore Chamber of Commerce and Industry. LCCI Senior Vice President Zafar Mahmood Chaudhry, Vice President Adnan Khalid Butt and a large number of businessmen were present on the occasion.
Kashif Anwar expressed reservations on SRO 420 under which Tajir Dost Scheme 2024 has been introduced. Businessmen who are outside the tax net and who have never filed a tax return are asked to deposit advance tax every month under this scheme which is not practically possible as the shopkeepers would have to remain associated with the tax lawyers.
Secondly, the tax will be determined based on the area of the shop and the value of the property, which has nothing to do with the sale. He suggested that this tax should be simplified and the shopkeepers would have to file a single-page return only once a year. He said that in this scheme, instead of minimum tax, the tax should be adjustable according to electricity bills, which should not be audited. He said that the traders should be given facilities, concessions and in the same manner as VTCS-2016 was introduced, people should be informed about this SRO with clarity.
Kashif Anwar said that recently a new condition was imposed through SRO-1842 according to which such retailers whose withholding tax under Section 236H in 12 months is more than one lakh are bound for POS integration. This will increase the burden on small retailers and make it more difficult to achieve important goals like widening the tax net.
Furthermore, provision of balance sheets and biometrics have been made mandatory for small businesses through SROs while Under the SRO, the turnover cannot be more than five times of the capital, otherwise the permission of the commissioner must be obtained. Kashif Anwar urged the government to simplify the taxation system. People would not come into tax net in the presence of audits, bank attachment and surcharge.
He said that the economic development cannot be possible until the problems of local industries are solved. He said that the government should introduce reforms on an emergency basis for the stability of the country’s economy without wasting a single moment. He said that devaluation of rupee has created problems like increase in inflation, high rate of markup and high prices of electricity, gas, petrol, which have to be controlled immediately.
LCCI President said that LDA demands 20% of commercial value as per its DC rate for conversion of existing industry and commercial area which is very high. RUDA and LDA officials also demand high rate of commercialization fee, which is not possible for the industry and businesses to manage immediately. These issues should be resolved on priority basis and a friendly attitude towards traders should be adopted.
He said that repeated increases in electricity and gas prices, the industry is facing serious problems as their cost of production has increased and they are unable to plan for the future. The government should reduce electricity and gas prices for the business sector.
Kashif Anwar also called for parking plazas and measures against encroachments.
Kashif Anwar said that heavy regulatory advertisement fee is demanded by the Parks and Horticulture Authority for those traders who use signboards only for identification.
He said that jewelers buy gold by paying the full amount to the buyer, but the police sometimes arrests the same man and bring him to the jewelers and blames for buying stolen gold. SOPs should be framed in this regard so that jewelers can be protected. He said that water hydrants should be installed in markets to get rid of the fire incidents.
Kashif Anwar urged the law enforcement agencies to take steps to improve the law and order situation in industrial areas, markets and prevent businessmen from theft and robberies. He said that the interference of government departments in business matters should be minimized. Harassing the business community and closing the factory for minor lapses demoralizes the industry, so this should be stopped.
He said that the government has also imposed MDI charges and electricity bills are being sent to the closed industrial units. He said that the water tariff in all cities should also be uniform.
Kashif Anwar said that the government has recently reduced the limit of Axel Load due to which Cargo Delivery Charges have also increased manifold. Non-opening of letters of credit is also creating problems for the business community. He said that the policy rate in Pakistan is 22 percent which is much higher than other countries in the region which should be reduced. He said that the taxpayers, whose advance tax is with FBR, their last year’s adjustment of advance tax has been canceled by the government which is creating cash flow problem. He said that due to non-receipt of refunds and delays, the business community is suffering from problems. FBR should resolve these issues immediately.
Regulatory duties, customs duties and additional customs duties should be abolished on the import of such industrial machinery and raw materials which are not manufactured in the country. He said that $ 17 billion are being spent on the import of crude oil to meet energy needs. The government should promote alternative sources of energy and build water reservoirs including the Kala Bagh Dam.
He said that the loss making state owned enterprises should be restructured or privatized. He said that the facility of free units of electricity and gas should be withdrawn. He said that instead of sealing factories or filing FIRs under anti-smog and dengue campaign, warning should be given first and legal action should be taken only when the problem is not resolved.
Copyright Business Recorder, 2024
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