Slash sales tax to 5 percent: FPCCI
Tuesday May 06, 2014
KARACHI: The business community has suggested a cut down in sales tax from 17 to 5 percent, which according to them would result in the increase of tax revenue.
Federation of Pakistan Chamber of Commerce and Industry (FPCCI) president Zakaria Usman said that according to FBR officials the government gets only 3.5 percent on account of 17 percent sales tax, as the remaining amount goes in refund, adjustment and corruption.
In this backdrop, FPCCI has advised the government to slash the sales tax from 17 percent to 5 percent, which would not only enhance the purchasing power of the people by 10 percent, but would also increase the sales tax receipts to over Rs1300 billion from Rs1000 billion besides it would help meet the IMF condition also.
He said that according to FBR 1.5 million retailers are paying sales tax amounting to Rs1000 billion annually, while if on average Rs3000 fixed tax was recovered from each of the retailers every month, the tax revenue would go up significantly, he asserted.