Request: Motorcycle dealers demand cut in turnover tax
Dealers were legally bound to pay 1% turnover tax, which was neither prudent nor sustainable.
LAHORE:
The Lahore Chamber of Commerce and Industry (LCCI) has asked the Federal Board of Revenue (FBR) to reduce the rate of turnover tax on motorcycle dealers from one per cent to 0.2 per cent.
LCCI President Irfan Qaiser Sheikh made the demand after holding a meeting with a five-member delegation of the Motorcycle Dealers Association.
Sheikh said the demand of motorcycle dealers was justified as their profit margin in the context of turnover ranged from 0.50% to 1% and normal tax on profit would in any case be lower than 1% of the turnover. But, he added, the dealers were legally bound to pay 1% turnover tax, which was neither prudent nor sustainable.
“How can motorcycle dealers survive when they give their little profit to the FBR in the shape of turnover tax,” he asked.
Published in The Express Tribune, January 26th, 2012.
The Lahore Chamber of Commerce and Industry (LCCI) has asked the Federal Board of Revenue (FBR) to reduce the rate of turnover tax on motorcycle dealers from one per cent to 0.2 per cent.
LCCI President Irfan Qaiser Sheikh made the demand after holding a meeting with a five-member delegation of the Motorcycle Dealers Association.
Sheikh said the demand of motorcycle dealers was justified as their profit margin in the context of turnover ranged from 0.50% to 1% and normal tax on profit would in any case be lower than 1% of the turnover. But, he added, the dealers were legally bound to pay 1% turnover tax, which was neither prudent nor sustainable.
“How can motorcycle dealers survive when they give their little profit to the FBR in the shape of turnover tax,” he asked.
Published in The Express Tribune, January 26th, 2012.