KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Agha Shahab Ahmed Khan has stressed that the rate of GST should be reduced to 14 percent from the current 17 percent in order to facilitate the traders’ community and consumers.
In a statement issued today (Tuesday), KCCI president said that the reduction in GST will have a positive impact on business sentiment and it would also trigger demand in the domestic market.
Highlighting Budget Anomalies identified by KCCI which have been submitted to the Anomalies Committee (Business & Technical), President KCCI advised withdrawing 3 percent further tax on sales. In this regard, Agha Shahab said that it is unjust to force suppliers to provide CNIC of unregistered persons and pay a 3 percent further tax at the same time.
President KCCI said that the increase in the rate of FED from 13 percent to 25 percent on Caffeinated Energy Drinks is unjust and discriminatory. “Caffeinated Energy Drink is produced by only one of the two major producers of beverages in Pakistan who contributes a major portion of over Rs.100 Billion in Tax revenue,” he added.
KCCI had proposed to restore Tax Credit at 10 percent on the purchase of new machinery for BMR, to encourage investment in industry and spur growth, which was allowed prior to 2019.
However, the proposals have not been included in Finance Bill’2020-21. Agha Shahab urged the policymakers to restore the rate of tax credit to at least 10 percent and this credit should be applicable up to FY2025 to enhance the investment in the production capacity of industries.
Expressing concerns over the re-imposition of a 3 percent value-added sales tax on commercial import of raw materials, President KCCI said that the VAT cannot be imposed where no value is added. “Therefore, the anomaly may be rectified and the clause re-imposing 3% Value Addition Sales Tax on commercial importers of Raw materials in the Finance Bill should be deleted,” he added.
He also advised to take out MDF Board from the items allowed under FTA due to material damage to the domestic industry which has adequate capacity to fulfill domestic requirements.
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