Simple tax system: PBEA greets Prime Minister's decision to facilitate traders

Pakistan Bedwear Exporters Association (PBEA) Patron-in Chief Shabir Ahmed has congratulated Prime Minister Nawaz Sharif for taking a very visionary decision in the interest of business community and the country by directing that a committee be formed to study and offer recommendations on FBR reverting back to circle based system of working to reduce tax compliance burden of business community and a single stage and single digit non adjustable sales tax system which is simple and where sales tax refunds of business community are not stuck up for months.
He said both these steps would go a long way in facilitating the business community. He hoped that simple mechanism will be put in place under new sales tax regime to cater to the needs of the exporters so that no burden is put on exporters. The present sales tax regime has lead to huge amount of sales tax refunds of bonafide exporters being stuck up for months which is seriously affecting the cash flow of business community, he mentioned.
"We have requested the Finance Minister to intervene and direct FBR to urgently release stuck up refunds of the exporters. The present system of sales tax is complex, complicated and cumbersome and encourages frauds. The present VAT based sales tax is not suitable for Pakistan's peculiar environment and has failed to take roots in Pakistan and at present the total sales tax filers are about 82,000 and the sales tax payment filers are less than 20,000. The country needs a simple sales tax system and the number of sales tax payment filers should significantly increase," he added.
He also stated that two months back, Pakistan Bedwear Exporters Association on April 02, recommended to FBR to revert back to circle based system so that the business community is saved from responding to multiple notices from the tax department. Both FBR and government have shown great wisdom in accepting the recommendations of our association. "We have assured on behalf of our association, full co-operation to PM, Finance Minister and FBR to increase the tax base and tax compliance in the interest of the country, he said.