Businessmen address more anomalies in the budget

KARACHI: Businessmen are not happy with the recently announced budget and even though they have had one meeting with the concerned authorities, there were more anomalies due to which they held another meeting, said Karachi Chamber of Commerce and Industry (KCCI) President Abdul Majid Haji Muhammad on Friday.

A delegation of the KCCI met with Regional Tax Officer Imtiaz Ahmed Barkzai on Thursday to address their concerns.

The businessmen said that the standard rate of sales tax has been enhanced from 16 to 17 per cent with effect from July 1. Additionally, the varied rates of sales tax provided through certain SROs have also been enhanced.

The rate of GST on various goods ranges from seven to 26 per cent, the increase of which has badly affected the cost of business and pushed up inflation. The KCCI suggested a single rate of 15 per cent GST.

They highlighted that despite the government’s assurances, regulatory duty and excise duty on imports have not been withdrawn which cause losses of Rs200 billion to the exchequer under the Afghan Transit Trade (ATT). The KCCI suggested withdrawal of regulatory and excise duties on imports, the delegation said.

Customs duty on crude palm oil has been reduced from Rs9,000 per ton to Rs8,000, to bring down the cost of vegetable ghee and oil whereas the said benefit has not been extended for RBD palm olein and RBD palm oil. The KCCI suggested extending the duty reduction of Rs1,000 to RBD palm olein and RBD palm oil as well.

The businessmen appealed that the advance tax imposed on banking transactions should be limited to cash withdrawal and should not be applicable to National Tax Number holders and active taxpayers.

Moreover, the withholding tax imposed on imports which was increased by 100 per cent last year and further increased this year to five per cent should not be more than three per cent, they said.

The KCCI also suggested the removal of advance tax imposed on the import of edible oil at three per cent. They said that while on other category of import items it is five per cent, the gap of two per cent does not allow a level-playing field to all importers.

Published in The Express Tribune, June 19^th, 2010.