KCCI advised to form body to analyse indenters’ tax

KARACHI: In response to the concerns raised over the imposition of 14 percent sales tax on services of indenters, the Sindh Revenue Board (SRB) has advised the Karachi Chamber of Commerce and Industry (KCCI) to form a committee to analyse such taxes.
Chairman SRB Tashfeen Khalid Niaz, on his visit to Karachi Chamber, asked KCCI to form a committee, “to further discuss the imposition of sales tax on services of indenters and seek a solution until the next meeting.”
Advisor Tax Policy SRB Syed Mushtaq Kazimi, Vice Chairman Businessmen Group and Former President KCCI Anjum Nisar, President KCCI Iftikhar Ahmed Vohra along with KCCI managing committee members and many indenters were present at the meeting.
On the occasion, President KCCI Iftikhar Ahmed Vohra immediately announced the formation of a three-member committee, which would be led by either President KCCI or by Senior Vice President KCCI Muhammad Ibrahim Kasumbi and will comprise of Vice Chairman BMG Anjum Nisar and Former President KCCI Khalid Firoz.
SRB chairman, while commenting on the concerns expressed by the meeting participants over the issuance of SRB notices to indenters, said, “The SRB officials would be asked not to act against any indenter until the next meeting between the KCCI committee and SRB.”
SRB Tax Policy Advisor, Syed Mushtaq Kazimi, said the SRB is not the only authority that has imposed sales tax on services of indenters, as similar sales tax on services of indenters was imposed last year in Punjab and it has also been imposed on the indenters of Islamabad.
"Around 14 percent sales tax on services of indenters in Sindh province is the lowest, whereas in Punjab and Islamabad, it stands at 16 percent," he added.
The President KCCI urged the SRB to immediately withdraw this unjust sales tax on services of indenters, who were already facing stiff competition.
He said it was not a wise move to impose an additional 14 percent sales tax on services of indenters who were already paying five percent withholding tax to federal government and playing an important role in earning foreign exchange for the country.
Senior Vice President KCCI Muhammad Ibrahim Kasumbi, on the occasion, stated that the business and industrial community of Karachi, besides facing infrastructure issue, were also suffering badly due to many other civic issues, exorbitant taxes including gas, electricity and water shortages along with rising cost of doing business which are hindering the industrialization.
Former President KCCI AQ Khalil, on the occasion, pointed that the indenting business is not as lucrative as it was in the past due to stiff competition and changing dynamics, because of the advanced use of web services and IT based technologies. Many indenters are finding it very hard to survive due to shrinking income.
“The imposition of sales tax on services of indenters would leave no other option for them but to either shut down or shift their businesses to any other province or country,” he added.