LAHORE - Punjab Revenue Authority chairman Dr Raheel Ahmad Siddiqui has called for awareness regarding taxation saying that a large number of people have the desire to pay taxes but cannot because of lack of awareness regarding taxation system.
Speaking at Lahore Chamber of Commerce & Industry, he said that PRA had taken up the issue of dual taxation with the Sindh government but it is not willing to reduce the tax being charged in Sindh. He said that this issue has already been discussed with the finance Minister. He said that Chief Minister Punjab Shahbaz Sharif is well aware of the issues being faced by the business community and taking all possible relief measures.
In his address, LCCI president Malik Tahir Javaid said that double taxation is one of the major issues being faced by the business community. It can be averted through harmonization between the provincial and federal taxes.
LCCI President Malik Tahir Javaid said that tax on leading service industries with reasonable contribution should be imposed at concessionary rates to encourage them as these are the largest share in country’s economy. It would certainly help them to grow locally and internationally consequently government revenue would also increase.
He said that there is a dire need of harmonization among the provincial and federal tax collecting agencies. There are certain major services including toll/vendor services which are still under the ambit of federal government whereas provincial governments also demand tax on such services.
The LCCI President said that if a service provider is resident in Punjab, and the service delivery to a service recipient is in Sindh, then the service provider is required to deposit sales tax with PRA. However, the service recipient still remains liable to sales tax recovery by SRB under Sind Sales Tax Services Act 2011, and reverse is true in case the service provider is in Sindh and the service recipient is in Punjab. In this regard, all the revenue boards should agree on jurisdictions and common rules. Issues of ‘origin’ and ‘consumption’ on services should also be clarified. This matter must be taken up with the concerned authorities.
He said that currently revenue collections of the province of Punjab fall under Punjab Revenue Authority, (PRA), Excise & Taxation and Board of Revenue (Punjab), it is proposed that that all revenue collections should be merged under one ministry/body. This would add considerably to the ease of doing business (EODB), a matter which should be a priority for all policy makers.