The chairman of General Sales Tax and Refund Sub-committee of the Karachi Chamber of Commerce and Industry (KCCI) has suggested to stop frequent changes in the sales tax policies and procedure to avoid confusion.
In a proposal, Sub-committee Chairman Muhammad Muzzammil Husain noted that conflicting policy statement on sales tax and frequent changes in procedures and frequent issuance of SROs are complicating the most important tax of the future. He said that frequent changes create confusion, fear and a negative business environment among the business community.
He has demanded that a clear policy and procedures be defined covering each sector in a single manual uniformity observed throughout the country in policies and procedures. Changes in law and procedure should be consulted with all stakeholders before implementation.
Muzzammil Husain noted that establishing General Sales Tax (GST) as the main revenue generating tax regime would promote healthy tax culture, promote trust between tax collectors and tax payers and create better business environment. He noted that the rate of GST at 15 percent is too high. It is an incentive for evasion and smuggling and burdens on the existing tax-base.
He suggested that GST rate should be reduced from 15 percent to 10 percent to encourage tax culture and expand tax base. The reduction would also provide relief to consumers, he added.