Traders decry recent tax hikes by Federal Board of Revenue
PML-N working committee asks for fiscal relief in the form for reductions in tax, utilities costs.
"This decision will further intensify the price hike in the province and will also create more problems for the provincial government," K-P Chamber of Commerce and Industries (KPCCI) President Zahidullah Shinwari. PHOTO: FILE
PESHAWAR:
Tacking on an additional 2% in value added taxes on mostly household goods is tantamount to weakening the fragile economy of the province and will be an extra burden on consumers, said traders in Khyber-Pakhtunkhwa (K-P) on Saturday.
According to a Federal Board of Revenue notification issued on Friday, a 17% sales tax will be applicable on power bills of textile units. The household goods which will face the tax hike include appliances as well as edibles such as biscuits and chocolates.
“This decision will further intensify the price hike in the province and will also create more problems for the provincial government,” said K-P Chamber of Commerce and Industries (KPCCI) President Zahidullah Shinwari.
FBR issued a number of Statutory Regulatory Orders on Friday – a move which, according to Shinwari, “ignored the parliament as amendments in sales tax can only be made by the parliament.” These tax bumps were made to fulfil key conditions set by the International Monetary Fund (IMF).
The federal government has already raised petroleum products’ prices by Rs5.57, noted Shinwari. “The last four months have seen an increase of Rs13 per unit on petroleum products.”
The tax hikes will further exacerbate the situation, commented traders, demanding the centre provide the war-affected province with a compensation package for losses incurred as a result of law and order conditions.
Businessmen and traders further suggested the government should expand its tax net instead of increasing the public’s burden vis-à-vis tax increments. They requested the federal finance minister to revoke the decision taken on Friday.
Calling for relief
The Pakistan Muslim League-Nawaz (PML-N) provincial working committee has asked for fiscal relief to the public in various taxes in Khyber-Pakhtunkhwa (K-P).
According to a handout, PML-N provincial president Pir Sabir Shah asked for rebates for the public in sales tax and power and gas bills for three years at a meeting of the working committee on Saturday. Terrorism in the province is badly affecting businesses in the region, said Shah.
The meeting also reviewed the current law and order situation and discussed a stronger liaison between the provincial and central leadership.
A unanimous resolution was passed at the meeting vis-a-vis the all-parties conference led by the centre earlier in September.
Those attending prayed for the victims of recent terrorist acts in Peshawar including the attacks on All Saints Church, Qissa Khwani and Gulbela bus.
PML-N central secretary general Iqbal Zafar Jhagra, central vice president Amir Muqam and provincial general secretary Rahmat Salam Khattak were also in attendance.
Published in The Express Tribune, October 6th, 2013.
Tacking on an additional 2% in value added taxes on mostly household goods is tantamount to weakening the fragile economy of the province and will be an extra burden on consumers, said traders in Khyber-Pakhtunkhwa (K-P) on Saturday.
According to a Federal Board of Revenue notification issued on Friday, a 17% sales tax will be applicable on power bills of textile units. The household goods which will face the tax hike include appliances as well as edibles such as biscuits and chocolates.
“This decision will further intensify the price hike in the province and will also create more problems for the provincial government,” said K-P Chamber of Commerce and Industries (KPCCI) President Zahidullah Shinwari.
FBR issued a number of Statutory Regulatory Orders on Friday – a move which, according to Shinwari, “ignored the parliament as amendments in sales tax can only be made by the parliament.” These tax bumps were made to fulfil key conditions set by the International Monetary Fund (IMF).
The federal government has already raised petroleum products’ prices by Rs5.57, noted Shinwari. “The last four months have seen an increase of Rs13 per unit on petroleum products.”
The tax hikes will further exacerbate the situation, commented traders, demanding the centre provide the war-affected province with a compensation package for losses incurred as a result of law and order conditions.
Businessmen and traders further suggested the government should expand its tax net instead of increasing the public’s burden vis-à-vis tax increments. They requested the federal finance minister to revoke the decision taken on Friday.
Calling for relief
The Pakistan Muslim League-Nawaz (PML-N) provincial working committee has asked for fiscal relief to the public in various taxes in Khyber-Pakhtunkhwa (K-P).
According to a handout, PML-N provincial president Pir Sabir Shah asked for rebates for the public in sales tax and power and gas bills for three years at a meeting of the working committee on Saturday. Terrorism in the province is badly affecting businesses in the region, said Shah.
The meeting also reviewed the current law and order situation and discussed a stronger liaison between the provincial and central leadership.
A unanimous resolution was passed at the meeting vis-a-vis the all-parties conference led by the centre earlier in September.
Those attending prayed for the victims of recent terrorist acts in Peshawar including the attacks on All Saints Church, Qissa Khwani and Gulbela bus.
PML-N central secretary general Iqbal Zafar Jhagra, central vice president Amir Muqam and provincial general secretary Rahmat Salam Khattak were also in attendance.
Published in The Express Tribune, October 6th, 2013.