- Business community proposes measures to improve ease of doing business, enhance revenues
Business Community Proposes Measures To Improve Ease Of Doing Business, Enhance Revenues
Business community Tuesday proposed various measures for inclusion in the next budget by the government to improve ease of doing business, enhance tax revenues and boost economic growth in the country
The proposals were made during a meeting of National Assembly Standing Committee on Finance, Revenues, and Economic Affairs held here under the Chairmanship of Faiz Ullah.
Presenting a joint proposal for federal budget 2019-20 by All Pakistan Chambers of Commerce and Industry, Kamal Amjad Mian from Lahore Chamber of Commerce and Industry said the number of taxes must be reduced to five by clubbing labour related taxes such as EOBI, PESSI, WPPI, WWF, professional and property tax, and federal and provincial sales tax.
Meanwhile presenting the proposals to the committee, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Engineer Daroo Khan said the government should make a comprehensive policy to encourage the people to establish industries in the country.
The government, he said should announce tax exemptions for 10 years to those who build their industrial units within a time period of three years.
The government should expand the tax net by documenting the economy and retailers, and small shopkeepers must be brought into tax net but rate of tax on them should not be more than 1%.
Industrial units should get a cheaper electricity to make them more competitive.
The FPCCI demanded that the sales tax should immediately be reduced from current 17% to 15% while it should be further reduced by cutting down by 1% annually.
Corporate sector is heavily taxed at the rate of 29% which is too high and should be cut down to 25%, he added.
Personal income tax of 20% is also too high and must be reduced.
Daroo Khan said custom duty on plant and machinery should be cut to zero.
He also suggested to establish large export houses on all bordering points with the neighboring countries to boost the bilateral trade ties with them.
He said the government was taking measures to curb issues of smuggling and under invoicing.
He asked the chambers to cooperate with the government in this regard.
He also urged them to give some suggestions about increasing tax revenues and also help the government in identifying venders, and retailers to bring them to the tax net.