Former Chairman Poultry Association, Abdul Basit has urged the government to allow duty-free import of grand parent stock which is raw material and a primary seed for poultry industry.
In a set of budget recommendations forwarded to the Federal Board of Revenue (FBR), Basit proposed that duty-free import of grand parent stock would help strengthen investment in the country as the existing rate of duty on this primary seed for poultry industry is discouraging local investment.
Giving the logic for duty-free import of grand parent stock, he said that the grand parent stock is the raw material of the poultry industry while the parent stock is a finished product, therefore, the poultry industry wants 25 percent duty on parent stock for being a finished product.
Basit suggested that there should be a complete ban on import of any item, which is being produced or can be produced locally. Every item, which is raw material for domestic industry should be free from all types of import taxes and duties.
To encourage local production, higher rate of taxes and duties should be imposed on the import of finished or semi finished goods, Basit proposed. He also suggested that 100 percent duty be imposed on the import of all kinds of chicken meat frozen or processed.
The government has increased turnover tax from 0.5 percent to 1 percent, which is very high and unjustified. It is proposed that if it is not brought back to zero percent then it should be the final discharge of tax liability. Then there should be no requirement for further checking or adjusting the record of business entity.
There should be no RGST on any food item and their raw materials, pharmaceutical items and their raw materials. There should be no refund system of GST. It should be only 1 percent. A major portion of Federal Board of Revenue (FBR) target is being met through collection of withholding tax. The withholding tax agent needs to hire and maintain technical staff for withholding tax deduction, deposit it into banks and for filing its tax returns. Furthermore, they have to maintain tax record separately. WHT agents have to bear all expenses for this entire WHT collection/deposit exercise, being done on behalf of FBR.
To meet these expenses incurred thereon, it is proposed that the government should pay a certain percentage of WHT collection to these agents. This will encourage them to do WHT collection working more efficiently. About revenue collection, Basit said there should be no probe for investment if made in industry especially in corporate sector. This will give direction to money which is being wasted in non-productive channels and if it is invested in the productive industrial sector it will create more jobs and more revenue for the times to come.
Every business entity, engaged in any business or in any other economic activity, must be registered with any trade body or chamber, under Trade Organisation Ordinance 2007. So automatically every business entity will have to have national tax number and to file its tax return/statement regularly to renew its membership with trade body. The government authorities should check only the membership of trade body then we will not need any controversial Reformed General Sales Tax (RGST).