Capacity tax: Beverage companies differ with govt over modalities to meet revenue targets

Companies re-affirmed commitment to increasing net tax payments by 25%.

ISLAMABAD: The government and beverage companies on Friday differed over modalities by which revenue targets are expected to be met as they discussed the controversial capacity tax.

Representatives of the beverage companies met with Federal Board of Revenue (FBR) in Islamabad on Friday in a meeting chaired by the federal finance minister Ishaq Dar.

Dar explained that the capacity tax system had been introduced in the last budget in order to allow the industry to work freely, without unnecessary interventions from the department while boosting contributions to the national exchequer.

During the meeting the FBR chairman presented the revenue performance of the aerated water industry during the first six months of the financial year, and suggested various options to meet the projected targets.

While the industry representatives re-affirmed their commitment to increase their net tax payment by 25%, continue the capacity system but they differed on the modalities for meeting the targets.

With no decision in this regard being reached on Friday, the representatives of the government and beverage companies decided to reconvene on February 19, 2014 for further consultation.