Traders leader and member of Rawalpindi Chamber of Commerce Chaudhry Sarfraz has lauded Prime Minister (PM) Imran Khan's consideration to extend the deadline for the Asset Declaration Scheme (ADS) hoping the scheme will help broadening the tax net
RAWALPINDI (Pakistan Point News / Online - 28th June, 2019) Traders leader and member of Rawalpindi Chamber of Commerce Chaudhry Sarfraz has lauded Prime Minister (PM) Imran Khan's consideration to extend the deadline for the Asset Declaration Scheme (ADS) hoping the scheme will help broadening the tax net and would reduce the burden from the existing taxpayersTalking to Online he called for extending ADS's for another three months till September 30 so that maximum number of businessmen could avail full benefit legalizing their undeclared assets.
He said that Tax Amnesty Scheme 2019 would relieve pressure on the economy and it will go a long way in achieving the desired results.He held by paying tax from 2-5 percent, all these undeclared assets can be legalized.Throwing light on the budget he said the first annual budget presented by PTI Government as quite taxing and burdensome for business class and the common man as it has further enhanced many taxes and abolished tax exemptions.
He said it has abolished zero-rating facility for five export-oriented industries that would enhance their production cost and make our exports more uncompetitive in international market.He noted that withdrawal of zero-rating can hit exports by two billion dollars as Rs400 billion refunds of the textile sector are already stuck. The GDP has slipped from the target of 6.2 percent to 2.9 percent and now the government has targeted four percent growth rate while IMF and Moody's has projected a growth of 2.
5 percent.He suggested the establishment of an autonomous body which can reduce the cost of doing business for exports and bringing the cost on inputs at par with the regional countries. Companies should be formed comprising experts and 25 top exporters for different exports sectors which will look after processing, branding, marketing certification, and standardization.He stated that export revenues will also be affected by the withdrawal of this zero rated facility andthis will potentially create a balance of payment crisis for the economy.
He demanded that the Government should introduce an automatic and efficient system of Refund Payments whereby 75% of the Refunds should be paid through the Bank upon the issuance of the attested copy of Bill of Lading while the remaining 25% of Refunds should be paid through the Banks against the export proceeds after 30 days.He underlined that sugar, ghee and cooking oil were the items of daily use for common man, but government has enhanced ST on sugar from 8 percent to 17 percent and imposed 17 percent FED on ghee/cooking oil that would directly impact the common man.
He said taxes on cement, steel and marble industries have also been increased that would hurt the construction industry and the poor people.He stated reduction in income tax threshold from 1.2 million to 0.6 million for salaried class and 0.4 million for non-salaried class would put additional burden on these people.He also urged the government for awarding industry status to furniture sector to enhance its exports to fetch a reasonable foreign exchange for the country.He demanded a clear policy statement from the government on dollar prices as day to day unprecedented devaluation of rupee would badly affect the manufacturing sector as it would lead to hike the price of raw material besides jacking up cost of doing business.He appealed to PM to evolve a balanced and equitable tax system for all flat steel industrial sector.
