Zero rating: Exporters against proposed sales tax
Both Malik and Firoz said that the sales tax on exports had failed miserably.
The exporters said the resulting revenue through tax would be lost through corruption. PHOTO: FILE
KARACHI:
President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Ahmed Malik and Vice President Gulzar Firoz have strongly opposed the decision to withdraw facility of zero rating for the five exports sectors and impose sales tax.
Currently the Federal Bureau of Revenue (FBR) does not collect any taxes from sectors in question, according to Gul Firoz. He said that the government wants to collect sales tax and then provide tax refunds, which is bound to lead to corruption, blockage of funds and create unnecessary hassles.
Both Malik and Firoz said that the sales tax on exports had failed miserably, as massive corruption in the refunds process resulted in loss of revenue to the tune of billions of rupees. They said that this move would only put an added burden on exporters, and the resulting revenue would be lost through corruption.
Published in The Express Tribune, June 1st, 2013.
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President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Ahmed Malik and Vice President Gulzar Firoz have strongly opposed the decision to withdraw facility of zero rating for the five exports sectors and impose sales tax.
Currently the Federal Bureau of Revenue (FBR) does not collect any taxes from sectors in question, according to Gul Firoz. He said that the government wants to collect sales tax and then provide tax refunds, which is bound to lead to corruption, blockage of funds and create unnecessary hassles.
Both Malik and Firoz said that the sales tax on exports had failed miserably, as massive corruption in the refunds process resulted in loss of revenue to the tune of billions of rupees. They said that this move would only put an added burden on exporters, and the resulting revenue would be lost through corruption.
Published in The Express Tribune, June 1st, 2013.
Like Business on Facebook to stay informed and join in the conversation.