ISLAMABAD: The government would announce a fixed tax regime for the furniture retailers to pay sales tax on the basis of electricity bills and exclude them from the category of big retailers (Tier-I retailers).
Federal Minister for Finance and Revenue Miftah Ismail held a meeting with delegation of Pakistan Furniture Association headed by its Chairman Zahid Hussain at the Finance Division on Tuesday.
Rana Ihsan Afzal, Coordinator to PM on Commerce and Industry, Chairman FBR, Muhammad Shakeel Munir, President Islamabad Chamber of Commerce and Industry (ICCI), and senior officers from the Finance Division attended the meeting.
The delegation apprised the finance minister about contribution of their industry in the development of the economy and also shared about the issues being faced by the furniture sector especially related to GST and other taxes. The delegation requested for resolving their matters and sought the support of the government for bringing in efficiency in this sector.
Finance Minister Miftah Ismail directed the relevant authorities to resolve the issues of furniture industry and asked for providing maximum relief to them. The finance minister further stressed Pakistan Furniture Association for enhancing their export base.
A delegation of the Pakistan Furniture Association led by Muhammad Shakeel Munir, President, ICCI, also briefed the Finance Minister about the difficulties being faced by the furniture retailers due to their placement in Tier-1 category for sales tax collection.
Zahid Hussain, Chairman All Pakistan Furniture Association, Patron-in-Chief Mian Muhammad Afzaal from Lahore, Rana Waheed Murad Senior Vice Chairman from Karachi, Safdar Rasheed Vice Chairman from Sahiwal, M Taaj Abbasi President from Rawalpindi, Danish Naeem Fakhri Senior Vice President from Chiniot, Riaz Mughal Vice President from Lahore, Irfanullah Khalil General Secretary from Peshawar, Qahir Khan Vice President from Quetta, Irfaan Kamboh Joint Secretary from Lahore, Vice President Sheikh Muddasir from Chiniot, Joint Secretary Chiniot Kamran Madal, Joint Secretary Said Muhammad Khan Mardan, Faisal But Information Secretary, Zubair Hafeez Vice President Sukkur, Jafar Hussain President Punjab, Mirza Mukhtar General Secretary Punjab, Raja Javed Senior Vice President Punjab, Sardar Saqib President Rawalpindi, Aamir Raza Sheikh President Islamabad, Sabir Awan General Secretary Islamabad, Umar Sami President Chakwal, Sajad Hussain President Talagang, Sardar Ashfaq President Abbotabad, Suleyman Mughal President Sargodha, Javed Elahi President Karachi, Feroz Shah President Peshawar and others were in the delegation.
Muhammad Shakeel Munir informed the Federal Finance Minister that the furniture industry had great potential to grow and boost exports of the country but placing furniture retailers in Tier-1 category for sales tax collection had created lot of difficulties for that sector that would affect its business activities.
He strongly pleaded the case of furniture retailers for bringing them under fixed tax regime so that they could pay their sales tax through their electricity bills at the rate specified in the finance bill while the income tax collection should be continued at the prevailing rate.
Zahid Hussain, Chairman All Pakistan Furniture Association said that a fixed tax regime for furniture retailers would increase the tax revenue for the country and reduce the issues of furniture retailers. He further requested that furniture retailers who were registered on the basis of area should be de-registered for tax purposes and subjected to fixed tax regime.
After listening to the issues of furniture retailers, Miftah Ismail, Federal Minister for Finance agreed to bring the furniture retailers in the fixed tax regime to save them from unnecessary problems and for this purpose, a new SRO would be issued soon. He further said the government would give due consideration to all genuine tax problems of the business community to promote ease of doing business for them so that they could play a more effective role in the economic development of the country.
Copyright Business Recorder, 2022
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