Govt making Efforts to Introduce a Uniform Sales Tax System
- The Govt and FBR collectively making efforts to introduce a uniform sales tax system in order to increase the tax rate.
- FBR vows to provide possible help and is ready to take a mega action against smuggling and unlawful afghan trade.
- Govt is set to face difficulties for the sake of changing the system and the ratio of Green Channel would be taken to 60%.
Govt is making efforts to introduce uniform sales tax system as there is need to increase tax rate which at present is only 11%, said Minister Hammad Azhar.
The Minister of Revenue, along with the chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi, held a meeting with heads of various trade businessmen at the Lahore Chamber of Commerce and Industry.
The traders’ community expressed severe concern over the budget 2019-20 and criticized the government for doubting everybody.
They urged chairman FBR and Minister of Revenue to make efforts to ensure that an uncertain business environment was done away with.
“The main purpose of the federal budget is the development of industrials sector and to generate employment opportunities,” the chairman FBR said.
Keeping in view the problems of the business community regarding customs duty, the ratio of Green Channel would be taken to 60%, he said.
He further said that the Sales Tax Registration process has been automated whereas the certification for imports would also be automated soon.
The chairman FBR urged the government to do away with the condition of necessary CNIC documentation for buyers.
In the budget 2019-20, it was decided that the federal government would increase the tax rate imposed on petroleum products.
It also decided to abolish the exemption of withholding tax on the cottage industry and impose sales tax on various items and also introduce a uniform value-added tax to generate revenue.
A participant asked the chairman FBR to advise his department not to issue wrong tax notices to the traders.
Responding to the query, he said that he had decided to limit the role of auditing in order to end the element of fear prevailing among the business community.
“We promise you to provide possible help to resolve your issues. But we have to increase our tax net in a bid to keep the wheel of industry moving. We are also ready to take a mega action against smuggling and unlawful afghan trade,” he said.
He further said that the government is ready to face difficulties for the sake of changing the system. However, if the new system of refunds doesn’t work, we will consult the business community on the issue of the zero-rated regime, he said.