Multiple Sales Tax rates should be withdrawn: FPCCI

By Fahim Patel Apr 29th, 2012 ( No Comment )

Karachi: Federal Board of revenue (FBR) should withdraw Sales Tax multiple rate and apply 9 per cent uniform rate on all products, urged Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

Talking in a pre-budget seminar organised by Karachi Branch Council (KBC) of Institute of Cost & Management Accountants of Pakistan (ICMAP) and the FPCCI, President Haji Fazal Khan Sherani, President FPCCI said this would not decrease government’s revenue, as smuggling eradicated and all quantities imported through legal channel, hence decreasing parallel volume of the economy.

He proposed under section 3(3)(a), a supplier is supposed to collect and deposit tax, whereas after introduction of Section 8 A, joint and several tax liability was placed for both buyer and seller for non-payment of output tax by seller.

He said Inland Revenue Department is issuing notices to commercial importers for doubtful and illegal refunds obtained by manufacturers, while investigating cases of refund claimants, whereas, commercial importers discharge their liability by paying Sales Tax, Value Addition Tax at import stage and should not be held responsible.