The Pakistan Industrial and Traders Associations Front (Piaf) has demanded of the government to announce special package of incentives in the upcoming federal budget for relief to business community and the common man facing multiple problems since long due to skyrocketing prices and high taxes.
Piaf Chairman Mian Abuzar Shad said the government should abolish withholding tax on cheques amounting to Rs 25,000 besides widening the tax net and bringing down the sales tax ratio from existing 15 percent to 10 percent. He said that widening of tax net would help the Federal Board of Revenue in meeting the revenue target with maximum ease. He said in the same way if the income tax ratio is curtailed, it would increase the number of tax payees in the country.
He said the government would have to adopt strict measures to cope with the menace of underinvoicing that is causing a huge loss to the exchequer. He suggested to the government that if the duty structure is further rationalised and brought to five percent, it would discourage both the underinvoicing and smuggling.
He also said the government would have to ensure the availability of the industrial raw material at minimum duties so that production cost could come down and the Pakistani merchandise could get maximum buyers in the international market. This would help the government in controlling trade deficit, which is going up with every passing day.
He said the number of indirect taxes was more than that of direct taxes and to ensure relief to common man, the government would have to eliminate levies in the petroleum products and electricity bills.
He emphasised that the recently announced 35 percent L/C margin should be done away with immediately and funds should be allocated for the establishment of business courts in the country so that all the business-related issues could be resolved without any delay. The former chairman of Pakistan Pharmaceutical Manufacturers Association and Highnoon Laboratories chairman also demanded of the government to drop levy of 35 percent L/C margin on the import of raw materials for manufacturing of medicines.