Govt urged to avoid imposition of new taxes

LAHORE: Lahore Chamber of Commerce and Industry (LCCI) President Sheikh Muhammad Arshad has urged the government to avoid imposition of new taxes in the federal budget and resolve the issues of withholding tax on a priority basis.

He was talking to a high-powered delegation of various markets, led by Khalid Pervez, at the Lahore Chamber on Tuesday.

The LCCI president said that the ongoing projects under China-Pakistan Economic Corridor (CPEC) have direct relation with the economic development.

He urged the government to ensure that Chinese investors and companies engaged in CPEC must consider the indigenously produced inputs from Pakistan except those, which are not produced locally.

Pakistan lacks culture of tax compliance due to unfair taxation system, he said.

Elimination of harmful taxation that hinders business and trade in the country was unanimously demanded.

Arshad said that the business community has serious reservations on the selection criteria of cases for tax audits.

The selection of audit should be made on the basis of parameters the Federal Board of Revenue (FBR) through random balloting rather than allowing the commissioners concerned to use their discretionary powers.

The federal and provincial sales tax authorities should agree on the constitution of fully empowered National Tax Commission to bring in harmony in the sales tax laws dealing with services.

There must be harmonisation in the federal and provincial tax regime to counter double taxation and harassment by the provincial tax authorities.

Khalid Pervez demanded of the government to withdraw withholding tax on banking transactions immediately, as it is not only forced the business community to avoid banking transactions, but also causing huge damage to the banking sector.