Sindh urged to boost agri tax collection

June 13, 2014

KARACHI: The Sindh government should reduce sales tax on services to single digits and improve tax collection on agriculture which is even less than one per cent of federal and provincial taxes, suggested the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday.

The apex body of trade and industry also wants the provincial government to gradually focus on increasing non-tax revenue through collection of user charges and fee.

In its ‘Budget 2014-15 Proposals for Sindh’, released on the eve of the provincial budget, the FPCCI noted that international donors and lending agencies have also been emphasising on increasing user charges in the head of water supply, sanitation, and other civic services.

In order to create efficiency in provision of these services and collection of revenue, it is suggested that government should use the ‘outsourcing’ of these services through contractual system on annual basis.

Know more: New levy proposed for Sindh budget 2014-15

“Additional taxes should not be raised from those who are already paying taxes. The increase in tax collections should be made from those entities and individuals whose income has so far either been exempted from taxes or who have avoided paying taxes,” the FPCCI suggested.

The FPCCI warned the Sindh government that if it does not reduce sales tax rate on services this may cause the shifting of services industries including financial institutions from the province.

The most important issue in the present context belongs to the security of economic assets and businessmen. As a result, the cost of doing business in Sindh has increased significantly on account of very high expenses on security related matters as the law and order situation of the province has become a major concern for the businessmen.

The FPCCI asked the provincial government to depute security forces in all important markets and industrial areas where kidnapping for ransom of industrialists and businessmen is on rampant.

It has also demanded that the Stamp Duty on Purchase Order (PO) at 0.2pc should be eliminated as it is a tax on ‘instrument’ and not on a transaction. The levy is currently enforced only in Sindh and therefore causes serious hardship for corporate sector.- dawn


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