Tax net needs to be broadened: Hafeez Shaikh

KARACHI: Finance Minister, Dr. Adbul Hafeez Shaikh, has sought cooperation of the business community to broaden the tax net and revenue generation equally from all sectors of economy. “There is also a need to eliminate undue tax exemptions,” the Minister said while talking to a group of the representatives of business community and office bearers of Karachi Chamber of Commerce and Industry (KCCI) here on Sunday at the KCCI office. He underscored the need to devise mechanism to curb smuggling under Afghan Transit Trade (ATT).He stated that people who are earning should pay their due share of taxes.The meeting was also attended by prominent business community leaders and KCCI President also discussed the changes in law and promulgation of SROs on 15th of this month.The Minister appreciated the role of KCCI to coordinate effectively across Pakistan with all sectors and furnishing meaningful proposals for revenue generation.

Siraj Kassam Teli, leader of business community. Chairman, Businessmen Group & former president KCCI, Zubair Motiwala, Advisor to Chief Minister Sindh on Investment, Chairman, Council of All Pakistan Textile Associations (CAPTA) & President KCCI, Saeed Shafiq, discussed proposals for sustainable policies for tax revenue generation to avoid budget deficit and balance of payments position.The Chairman Federal Board of Revenue (FBR), Salman Siddique, on the occasion, agreed that the consignments of commercial importers that reached ports before March 16, will be taxed as was position before promulgation of the SRO on March 15 while GST will be charged only when sale will be made to unregistered persons for consignments reached after March 15th.According to the statement of KCCI issued after the meeting late on Sunday, by virtue of SRO 230(I)2011 dated 15th March, 2011, SRO 549(I)/2008 was amended and sales tax zero-rating on plant, machinery and equipment was withdrawn.The said matter was also discussed and request was made to Finance Minister to rescind amendment as this was capital investment and must not be subject to any front loading to promote industrialization and create job opportunities, the statement added – APP