FPCCI finalizes its budget proposals for 201314

KARACHI: Federation of Pakistan Chambers of Commerce and Industry FPCCI in its budget proposals has prepared a number of tax reforms in its quest to broad tax net and bring more taxpayers into the net.

President FPCCI Zubair Ahmed Malik while finalizing the budget proposals for the forthcoming budget 201314 said that in order to pursue more people into tax net, all taxpayer should be issued a card on the pattern of credit card titles FBR
National Identity Card under which all taxpayers should be given one per cent concession on all transactions, government payments, utilities bills and government challans while nontax payers should be charged one per cent additional on all such transactions. Malik said that FPCCI would submit its budget proposal to the government and FBR very soon.

He said that the budget proposals submitted by FPCCI would pave a way to the economic revival, bring more taxpayers into tax net and revival of industry. He however said that if the proposals prepared by the apex body of the country’s businessmen would not be incorporated into federal budget the FPCCI would reject the Federal Budget 201314. He said that FPCCI in its proposals has declared tea, coffee, tyres, PVC, POL products, electric appliances and machinery, polythene, steel products, cigarettes, sulphonic acid, ceramic tiles, surgical instruments and medical equipment, mobile phones and spices as smuggling prone and should be protected from smuggling.

He said that FPCCI is finalizing budget proposal on the wake of sinking economy and grim financial constraints and it would be government’s responsibility to prepare budget considering FPCCI’s budget friendly and revenueoriented proposals. He said that the country is heading towards economic collapse and if the government would not take revolutionary steps including
imposition of agriculture tax, the economy gets totally collapsed. He said that government should have to take serious measures to overcome energy crisis and control deteriorating law and order.

The apex body has further suggested declaring issuance of cash memo or invoice on all business transactions as mandatory and seller and buyer have to mention NTN on the invoice. This would help a lot to bring more taxpayers into the net. He said that tax ratio should be reduced and identify the non taxpayers through utility bills especially electricity and phone bills.

He said no withholding tax should be charged from taxpayer while non taxpayers should have to pay one percent withholding tax on cash withdrawals from banks. He said that advance tax should be charged on property transfers and private clubs’ memberships.

He asked the FBR to make all tax laws, forms, returns, statements and important documents easy and brief so that people would get attracted to come into the tax net. He once again emphasized to done to away with SRO culture and instead of issuing arbitrary SROs stakeholders should be consulted.