The Competition Commission of Pakistan (CCP) has issued a Policy Note to the Punjab Revenue Authority (PRA) and the Sindh Revenue Board (SRB), recommending them to withdraw the exemptions granted to the informal, non-corporate transporters of goods, from sales tax on inter-city carriage of goods by rail or road. CCP took notice of the Circulars issued by the Punjab Revenue Authority and the Sindh Revenue Board on 1st September 2015 and 24 July 2015, respectively granting exemptions to the informal transporters of goods from sales tax.
The CCP observed that the exemptions granted to the non-corporate entities had placed the corporate sector at a competitive disadvantage. The Policy Note stated that preferential tax treatment of different undertakings is a competition concern as it creates an arbitrary distinction between services providers, with some entities liable to pay sales tax while other providers of exactly the same services in the same market are excluded.-PR
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