FPCCI seeks removal of budget anomalies before NA approval


KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) is scheduled to meet Prime Minister Shahid Khaqan Abbasi and Finance Minister Dr. Miftah Ismail on Tuesday, May 08, 2018 for removal of anomalies in budget 2018/2019 before its approval from the national assembly.
In this regard a delegation of FPCCI led by the President Ghazanfar Bilour and Syed Mazhar Ali Nasir, Senior Vice President will hold a meeting on Tuesday with the prime minister and the finance minister to discuss the issues and anomalies in recently announced federal budget 2018-2019 for their removal expeditiously before the Finance Bill, 2018 is passed by the National Assembly.
Identifying the issues Syed Mazhar Ali Nasir, SVP and Chairman of Budget Advisory Council, FPCCI will be urging the government to resolve the long outstanding issue of GIDC by rationalizing the previous accumulated GIDC dues, within its tenure. He is also urging that the Further Tax on sales to unregistered persons be scaled down from 3 percent to 1 percent, originally introduced vide Finance Act, 2013 as it is a root cause of flying invoices.
The FPCCI may propose that the final Tax Regime (FTR) status of Commercial importers be restored and the tax paid at import stage at 6 percent U/S 143B of Income Tax Ordinance, 2001 should be considered as full and final discharge of their tax liability.
Regarding refunds Syed Mazhar Ali Nasir will urge the government to finalize the mechanism of payment of all pending refund claims of all Federal and local taxes and duties, within three months, in consultation with FPCCI, to save the exporters from liquidity crunch.
Syed Mazhar Ali Nasir informed that he would also request to remove the anomaly of the Circular # 14 of October 6, 2011 which specifies that if the unit is located in the affected area and sale is made out of affected area, is not exempted from Income Tax. However, If unit is out of affected area and sale is made in affected areas then it is exempted from Income Tax as it has created disharmony and confusion amongst the businessmen of the KPK Province.