LAHORE - The Federation of Pakistan Chambers of Commerce and Industry has demanded cut in sales tax to single digit, as it will eliminate malpractices in refund claims and input tax, reducing cost to the exchequer.
The FPCCI standing committee on law and order regional chairman Khawaja Khawar Rashid, who is also Executive Committee member of Lahore Chamber of Commerce and Industry, advocated for equitable taxation while emphasizing on expansion of tax net rather than putting more burden on the existing taxpayer.
He said that the reduction is sales tax will lead in generation of Rs1500 billion in the next financial year 2014-15. The main advantage of reducing sales tax to single digit will be giving relief to the common man especially to the low and middle income group by reducing the inflation, he added.
Khawaja Khawar said that lower rate of Sales Tax will increase revenue for the government and discourage corrupt and malpractices in input and adjustment. It will give industry a breathing space against the menace of smuggling which is wide spread in the country. The simple procedures in sales tax will give the Government an opportunity to work more efficiently within the Sales Tax department.
He demanded for such incentives that could not only transform the existing infrastructure into an efficient network but also bring radical changes in the society through improved socio-economic indicators.