The Lahore Chamber of Commerce and Industry (LCCI) on Saturday welcomed the removal of cash margin requirement on the import of goods, terming it a step in the right direction.
In a statement, LCCI President Kashif Anwar, Senior Vice President Zafar Mahmood Chaudhry and Vice President Adnan Khalid Butt said that due to the measures taken by the government and the State Bank of Pakistan (SBP) to minimise imports, the industry was facing shortage of raw material, machinery and other inputs, which was affecting all sectors.
They said that industries and businesses were also experiencing shortage of funds due to the condition of 100% cash margin but “now the situation will take a positive turn”.
“Removal of cash margin will support ease of doing business. The government should also eliminate regulatory duty, customs duty and additional customs duty on essential raw material,” they demanded.
The LCCI office-bearers stressed that the issues of pending tax refunds and multiple audits should also be resolved besides reducing the rate of withholding tax on businesses.
“Our industries are facing problems like high policy rate, which has reached 20%, and high energy costs, due to which business costs have increased a lot,” the statement said.
“We have always insisted on widening the tax base and suggested to the government to immediately announce a declaration scheme so that the undeclared foreign reserves can become part of our economy.”
Apart from that, they said, taxpayers had to undergo multiple audits of income and sales tax. “We appeal to the government that the number of audits should be reduced.”
Existing taxpayers have to bear the burden of all audits, penalties, surcharges, inquiries, statements, returns, penalty for late filing of statements/income tax returns and many other problems.
“The current situation demands that the rate of penalties and surcharges should be reduced for taxpayers,” the LCCI office-bearers stressed.
As income tax audit was conducted after every four years, sales tax audit should be undertaken as an income tax audit, they suggested and underlined the urgent need for simplifying the tax system.
The LCCI has formulated some important proposals to fix the current economic situation of the country. It has requested the political leaders to share their economic manifesto so that a charter of economy could be drawn up.
Published in The Express Tribune, March 26th, 2023.
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