Govt has overburdened taxpayers: KCCI
KARACHI:
Businessmen criticised the budget 2011, alleging that the government has overburdened its present tax payers instead of broadening the tax net.
The impact of the budget was discussed at a gathering of the Karachi Chamber of Commerce and Industry (KCCI).
They criticised the government for turning a blind eye to the problem of smuggling in the Afghan Transit Trade (ATT) saying that the government was indifferent to one of biggest problems facing Pakistan’s industry. They said that nothing had been done despite numerous meetings with Federal Board of Revenue (FBR) and other institutions government on issue.
“The government will not listen to us unless we unite and protest against the anomalies in the budget 2011,” said former chairman of the KCCI, Anjum Nisar. He explained that the business community should protest against the government’s wrong decisions.
“We pay a larger percentage of the government’s taxes relative to the agricultural and services sectors. The government still tries to squeeze our already overburdened sector despite this,” said Nisar.
A large number of distributers attended the meeting and raised the concern about distributors not being able to pass on the extra cost of taxes, as manufacturers would easily pass on the increase in their cost of production to the consumers.
Abdul Majid Haji Muhammad, Chairman KCCI said that government had accepted many proposals of business community including ATT but increase in sales tax and targeting Rs85 billion more in taxes from the existing tax net was unfair.
“Broadening the tax net is the only viable solution before government,” he explained.
More than Rs225 billion is the annual revenue loss that ATT incurred to national exchequer and in this budget government should have done something about this serious issue, said the businessmen. They added that government should reduce the subsidy being given to PEPCO, PIA and Pakistan Steel to control the budget deficit instead of further burdening the industry.
Published in the Express Tribune, June 9th, 2010.
Businessmen criticised the budget 2011, alleging that the government has overburdened its present tax payers instead of broadening the tax net.
The impact of the budget was discussed at a gathering of the Karachi Chamber of Commerce and Industry (KCCI).
They criticised the government for turning a blind eye to the problem of smuggling in the Afghan Transit Trade (ATT) saying that the government was indifferent to one of biggest problems facing Pakistan’s industry. They said that nothing had been done despite numerous meetings with Federal Board of Revenue (FBR) and other institutions government on issue.
“The government will not listen to us unless we unite and protest against the anomalies in the budget 2011,” said former chairman of the KCCI, Anjum Nisar. He explained that the business community should protest against the government’s wrong decisions.
“We pay a larger percentage of the government’s taxes relative to the agricultural and services sectors. The government still tries to squeeze our already overburdened sector despite this,” said Nisar.
A large number of distributers attended the meeting and raised the concern about distributors not being able to pass on the extra cost of taxes, as manufacturers would easily pass on the increase in their cost of production to the consumers.
Abdul Majid Haji Muhammad, Chairman KCCI said that government had accepted many proposals of business community including ATT but increase in sales tax and targeting Rs85 billion more in taxes from the existing tax net was unfair.
“Broadening the tax net is the only viable solution before government,” he explained.
More than Rs225 billion is the annual revenue loss that ATT incurred to national exchequer and in this budget government should have done something about this serious issue, said the businessmen. They added that government should reduce the subsidy being given to PEPCO, PIA and Pakistan Steel to control the budget deficit instead of further burdening the industry.
Published in the Express Tribune, June 9th, 2010.