The business Community of Southern Punjab has reiterated its demand to cut the sales tax down to single digit to take burden off the consumers so that they could heave a sigh of relief. The spokesman said that there should be low rate of sales tax, as our economy has strengthened enough to introduce single digit sales tax rate.
President of Multan Chamber of Commerce & Industry (MCCI) said that issue of low rate of sales tax must be discussed in the meeting on budget proposals (2017-18) between Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and representatives of business community of tribal areas and small traders. Roomi said that multiple layers of taxes are applicable on business community including federal, provincial and local taxes. There should only be two taxes - sales tax/VAT and income tax. Sales tax rate ought to be reduced from 17 to 7 percent in upcoming budget for 2017-18. He said that the pro- business community budget should be introduced and payment of sales tax refunds be made immediately to the business community.
Tax authorities had assured the business community that the issue of admissible refunds would be resolved on priority basis but this commitment has not been materialised. He also proposed that zero-rating facility should be extended to all export sectors and it should not be limited to five major sectors. At the same time, a very strong system of checks and monitoring should be put in place for zero-rated sectors.
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