Business, industry be consulted on taxation: PAAPAM

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Monday, August 05, 2013 - Lahore—Pakistan Auto Parts Manufacturers Association (PAAPAM) Saturday called for broadening the tax net, terming it the only way to increase revenues because one of the cardinal principles of taxation is that it should be levied on the basis of ‘capacity to pay’.

 

PAAPAM Chairman Munir Bana stressed the need for implementing the tax-related measures but in consultation with the business and industrial community, citing that in the wake of electricity and gas shortage coupled with rupee devaluation and fuel hikes, they would neither accept nor be able to bear the burden of more taxes.

 

Munir Bana said auto parts manufacturers and businessmen expected the federal government of giving them relief in the shape of fixed electricity tariff besides reviewing the gas prices. The raise in minimum turnover tax to one percent would impact industrialization negatively, therefore, it should be reduced to previous level of 0.5 percent, he demanded.

 

About expansion in the list of Withholding Tax Agents, he said, small tier two suppliers could not manage deduction/depositing of tax on purchases from smaller suppliers; and, in any case, almost all of such small suppliers were covered under presumptive or self assessment regimes.

 

The PAAPAM Chairman also objected the raise in rates of advance taxes and suggested the government to restore depreciation allowance from 25 percent on plant to its previous level of 50 percent to ensure balancing, modernization and reconstruction activities of the industry.

 

While, PAAPAM Vice Chairman Usman Malik said furnishing of bank data to the FBR would discourage depositors from depositing their savings in banks and encourage the black economy. He proposed that account should be blocked only after completing due process and recording of reason in writing.

 

He also demanded for withdrawal of Income Support Levy at 0.5 percent on movable assets.



Courtesy:   Pak Observer


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