ISLAMABAD - Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday demanded the government gradually reduce the rate of general sales tax (GST) and taxes on corporate sector to revive the industry in the country. The FPCCI has recommended the government to consider its decision of devaluing the currency, which had resulted in inflation in the country and affecting the common people. The government should also give ten years tax exemptions instead of existing five years on establishing new industry in the country. FPCCI President Daroo Khan gave budget proposals in the National Assembly standing committee on Finance and Revenue yesterday.
He also suggested that government should provide gas and electricity to the industries on subsidies rates to enhance the country’s exports. Similarly, the government should reduce the taxes on property while increasing rates from existing DC rates.
The retail sector should be brought into tax. The rate of GST gradually reduces to 15 percent from existing 17 percent. Meanwhile, tax rate on corporate sector should be brought to 25 percent from current 29 percent.
The government should give the hold of Export Development Fund Board (EDFB)’s charge to the private sector to enhance the country’s exports. The government is not utilizing the funds allocated under this fund. He informed that government had spent only Rs10 billion on increasing exports out of Rs58 billion. President FPPCI also suggested that government should improve trade relations with Afghanistan. Trade between Pakistan and Afghanistan is currently $1.5 billion as against $10 billion potential exist.
The 10th meeting of the Standing Committee on Finance, Revenue and Economic Affairs of the National Assembly was held under the chairmanship of Mr. Faiz Ullah, MNA. The Committee discussed the budgetary proposals, received from Federation of Pakistan Chambers of Commerce & Industry (FPCCI), and Chambers of Commerce & Industry (Lahore, Karachi, Quetta, Peshawar, Sialkot, Gujranwala, Rawalpindi, and Islamabad) and unanimously recommended to FBR for their views/comments on the said suggestions/ proposals. Member (IR-Policy), FBR assured the Committee that para-wise comments of the FBR on the proposals will be furnished within week time to National Assembly Secretariat for further consideration by the Members of the Committee.
The Committee discussed the issues pertaining to restoration the custom duty on the import of Phthalic Anhydride and directed to Federal Board of Revenue (FBR) to consider the said matter with stakeholders, chemical associations and report in this regard may be submitted to the Committee within seven days.
Member (IR-Policy), FBR informed the Committee that a meeting was convened with Pakistan Tyres Importers & Dealers Association to consider the matter about regulatory duty on the import of tyres. The Committee recommended that final report on the issue may be submitted within week time.
The meeting was attended by MNAs Mr. Raza Nasrullah, Mr. Jamil Ahmed Khan, Mr. Faheem Khan, Ms. Nusrat Wahid, Dr. Ramesh Kumar Vankwani, Mr. Qaiser Ahmed Sheikh, Mr. Ali Pervaiz, Dr. Aisha Ghaus Pasha, Ms. Nafisa Shah, Syed Naveed Qamar and Mr. Abdul Wasay, besides the senior officers of FBR and different stakeholders.