Simplified, fixed rate tax regime: FPCCI reminds finance minister of his promised position

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has reminded Finance Minister on his promised position to introduce simplified taxation regime on fixed rate basis for the category of the retailers other than the tier-1 retailers, as is specified for the conditions.

Suleman Chawla, Acting President FPCCI and Engr. M. A. Jabbar, VP FPCCI, who had attended the meeting with the Finance Minister regarding budgetary proposals, also discussed the imperative need of broadening the tax net through bringing in the documentation for retailers; other than the tier-1; by providing simplified taxation regime on a fixed tax rate basis.

Suleman Chawla, while appreciating Finance Minister on the due and required offer of introducing the fixed tax regime for small retailers, has appreciated the applied mind of finance minister to contain the agitations, controversies, conflicts and contradictions; as being witnessed, including the small businessmen and retailers’ sit-in around FBR and agitating against tax officers.

They said that the first and the foremost motive and objective before the finance minister should be to silent the conflicts arising out of forced documentation through statutes and manufactured harassment and notices at large issued by FBR functionaries in almost all over Pakistan. In this regard, FPCCI has received several complaints from its member bodies represented by small traders’ associations and chambers that they would like to be documented in a non-humiliating manner; the first step of which is through a simplified tax regime.

FPCCI believes that, by initiating simplified and fixed tax regime, the present government will increase the revenues and the businesses shall be conducted in harmony; instead of amidst conflicts and contradictions. Moreover, the logical approach of broadening the tax net is highly necessary through the simplified fixed tax regime in a highly non-documented economy; wherein, the sales tax registered entities have not even reached two hundred thousand.

To gradually put these people into the tax net will move towards increasing the documentation in a highly disproportionate taxed economy; whereas, the manufacturing sector of less than 13 percent of GDP is bearing the brunt of highest taxation of 58 percent of the total tax generation.

Suleman Chawla invited the attention of finance minister that two decades back the earlier government of biggest coalition partner of the present dispensation had introduced trade enrolment certificates to gradually bring the small retailers and businessmen into the tax net; which was later turned into total taxation of 0.75 percent of the turnovers – including sales tax & income tax.

He further said that the well-thought-out moves of political governance in respect of measures to bring in small retailers and businessmen into the tax net through simplified and fixed tax regime was not promoted by bureaucracy; which later on caused agitations and sit-ins.

Acting President and VP FPCCI appealed to the finance minister that his promised position during the meeting with the delegation of FPCCI should be given due consideration by incorporating the simplified and fixed tax regime for retailers and small businessmen other than tier-1; so that agitations would come to an end and tax collection could be increased.

Copyright Business Recorder, 2022