Suggestion: LCCI president calls to resolve double taxation
Says uniform system can be worked out by the FBR that can streamline rates.
LCCI president suggested that in order to facilitate the taxpayers, the business environment and thereby the provincial economies, there should be harmonisation and collaboration between provincial revenue collection bodies (PRCB) and the FBR. PHOTO: FILE
LAHORE:
Lahore Chamber of Commerce & Industry (LCCI) President Sheikh Muhammad Arshad has said that it would be hard for the economy to grow in the presence of major issues like double taxation and undue delay in refund claims.
Arshad urged the Federal Board of Revenue (FBR) to pay attention towards double taxation which has become a major hurdle in the running of smooth businesses.
He said that after the 18th Amendment, provinces have developed their own legislations and rules for the administration of sales tax on services.
It is argued in the light of various international studies that the ideal sales tax system is perhaps a uniform national one where the distinction between commodity (goods) and services is artificially eliminated and the system is made uniformly and seamlessly applicable on both goods and services across the country.
He said a uniform system can be worked out by the FBR and provincial authorities that can streamline the tax rates to ensure a more even atmosphere for businesses which will in turn result in increased GDP.
The major issues faced by the taxpayers at present due to non-collaborations between various taxation bodies (FBR, PRA, SRB, etc.) are jurisdiction disputes, double taxation between provinces, non-uniformity of provincial laws, structural issues in provincial revenue collection bodies, and overall lack of collaboration and harmonisation.
LCCI president suggested that in order to facilitate the taxpayers, the business environment and thereby the provincial economies, there should be harmonisation and collaboration between provincial revenue collection bodies (PRCB) and the FBR.
Published in The Express Tribune, May 18th, 2016.
Lahore Chamber of Commerce & Industry (LCCI) President Sheikh Muhammad Arshad has said that it would be hard for the economy to grow in the presence of major issues like double taxation and undue delay in refund claims.
Arshad urged the Federal Board of Revenue (FBR) to pay attention towards double taxation which has become a major hurdle in the running of smooth businesses.
He said that after the 18th Amendment, provinces have developed their own legislations and rules for the administration of sales tax on services.
It is argued in the light of various international studies that the ideal sales tax system is perhaps a uniform national one where the distinction between commodity (goods) and services is artificially eliminated and the system is made uniformly and seamlessly applicable on both goods and services across the country.
He said a uniform system can be worked out by the FBR and provincial authorities that can streamline the tax rates to ensure a more even atmosphere for businesses which will in turn result in increased GDP.
The major issues faced by the taxpayers at present due to non-collaborations between various taxation bodies (FBR, PRA, SRB, etc.) are jurisdiction disputes, double taxation between provinces, non-uniformity of provincial laws, structural issues in provincial revenue collection bodies, and overall lack of collaboration and harmonisation.
LCCI president suggested that in order to facilitate the taxpayers, the business environment and thereby the provincial economies, there should be harmonisation and collaboration between provincial revenue collection bodies (PRCB) and the FBR.
Published in The Express Tribune, May 18th, 2016.