OICCI submits tax suggestions to Punjab
Asks for lower rate on services, agricultural income
PHOTO: REUTERS
KARACHI:
The Overseas Investors Chamber of Commerce and Industry (OICCI) submitted comprehensive “Taxation Proposals” for the upcoming 2017-18 Punjab Budget, focusing on accelerating economic growth and Foreign Direct Investment inflow in the province and in the country.
The OICCI’s suggestion, which ask for lower tax rates on services, agricultural income and telephone, represent the collective recommendations of foreign investors in Pakistan.
According to the proposal, Punjab’s sales tax rate, which is 16% on services, should be reduced in the upcoming budget at parity with Sindh sales tax rate of 13% and gradually reduced to 10% over the next three years.
Additionally, agricultural income should be taxed on actual, rather than notional income, including rent income of absentee landlords, according to the recommendation.
Meanwhile, telephone use sales tax rate of 19.5%, should be made equivalent to general sales tax rate on services. Input Adjustment on Franchise Fee should be allowed to manufacturers; while input tax paid by pharmaceutical industry and export of services by registered persons should be zero-rated.
In a press release, OICCI President Khalid Mansoor lauded the provincial government and stated that their recommendations could benefit all stakeholders in Punjab.
“OICCI members commend the initiative being taken by the Punjab government and Punjab Revenue Authority in broadening the reach of its coverage to 45,000 registered taxpayers already and its active engagement in building a conducive private-public partnership among the key stakeholders in the province,” he said.
“The Punjab government should give a serious consideration to our taxation proposals which will lead to a win-win situation for the province, the country and the tax payers,” he added.
Published in The Express Tribune, April 18th, 2017.
The Overseas Investors Chamber of Commerce and Industry (OICCI) submitted comprehensive “Taxation Proposals” for the upcoming 2017-18 Punjab Budget, focusing on accelerating economic growth and Foreign Direct Investment inflow in the province and in the country.
The OICCI’s suggestion, which ask for lower tax rates on services, agricultural income and telephone, represent the collective recommendations of foreign investors in Pakistan.
According to the proposal, Punjab’s sales tax rate, which is 16% on services, should be reduced in the upcoming budget at parity with Sindh sales tax rate of 13% and gradually reduced to 10% over the next three years.
Additionally, agricultural income should be taxed on actual, rather than notional income, including rent income of absentee landlords, according to the recommendation.
Meanwhile, telephone use sales tax rate of 19.5%, should be made equivalent to general sales tax rate on services. Input Adjustment on Franchise Fee should be allowed to manufacturers; while input tax paid by pharmaceutical industry and export of services by registered persons should be zero-rated.
In a press release, OICCI President Khalid Mansoor lauded the provincial government and stated that their recommendations could benefit all stakeholders in Punjab.
“OICCI members commend the initiative being taken by the Punjab government and Punjab Revenue Authority in broadening the reach of its coverage to 45,000 registered taxpayers already and its active engagement in building a conducive private-public partnership among the key stakeholders in the province,” he said.
“The Punjab government should give a serious consideration to our taxation proposals which will lead to a win-win situation for the province, the country and the tax payers,” he added.
Published in The Express Tribune, April 18th, 2017.