Post Reply 
 
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Pakistan Business Council supports implementation of value-added tax
05-20-2011, 11:27 AM
Post: #1
Pakistan Business Council supports implementation of value-added tax
KARACHI: Pakistan Business Council (PBC) has strongly supported across-the-board implementation of the value-added tax (VAT) in the federal budget for greater documentation and fair competition among the sectors of the economy.

In its budget proposals for 2011/12, the PBC suggested measures to the government for increasing tax-to-GDP ratio and broadening the tax base through fair distribution of the tax burden.

The PBC recently submitted the proposals to the Ministry of Finance, saying that the formal sector in Pakistan faces an unfair competition from the undocumented sectors of the economy.

While supporting the VAT, it said that where documentation is currently not possible as with major segments of the retail and wholesale chain, the model followed for the zero-rated export sectors may be followed.

“For the previously zero-rated export sectors, a lower rate of tax is charged when a registered person sells to an unregistered buyer,” it added.

The PBC recommended that all income irrespective of source should be taxed for broadening the tax base. Presently, certain incomes, most notably agriculture income, are exempted from the income tax, it added.

It said that currently no incentive for individuals insist on proper sales receipts. Therefore, it is recommended that computerised sales tax invoices for sales made to individuals should be made part of the national sales tax compliance incentive.

Giving rationale of the proposal, the PBC said that it would improve documentation of the economy.

The council strongly recommended tax on real estate developers and builders. It proposed real estate developers should be taxed on a per square foot basis for built up property and a per square yard basis on land developed for sales.

“However, houses constructed on plots of less than 100 square yards or equivalent and apartments with a covered area of less than 800 square feet, as well as developed plots of less than 120 square yards in the residential areas should be exempted from tax,” it said.

“This should only be available if the taxpayer does not already have a house, plot or apartment registered in his/her name,” it added.

It was recommended that filing of tax returns should be made mandatory for persons who have credit card in their name; have taken a personal loan from any financial institution; have travelled outside the country in the last financial year; are member of a private club; are members of a professional body; own urban property of more than 240 square yards or equivalent or an apartment with the covered area more than 1,500 square feet. For manufacturing units and retail wholesale trade, it suggested registration with the tax authorities of units, which have either a commercial or an industrial utility connection.

For retail outlets operating with domestic utility connections, the minimum size of 500 square feet is recommended for registration.
Visit this user's website Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Possibility of Booming Pakistan Real Estate Business Salman 0 5,357 03-27-2014 07:50 PM
Last Post: Salman
  Morgah City Islamabad affectees seek implementation of SC orders CMY 0 5,561 12-28-2013 08:58 AM
Last Post: CMY
  Luxury Tax Imposition: Implementation Of Budget Begins Salman 0 5,263 06-22-2013 12:16 PM
Last Post: Salman
  CDA staff directed to ensure strict implementation Salman 0 4,458 05-20-2013 12:18 PM
Last Post: Salman
  CDA board forms half a dozen committees for implementation Salman 0 4,321 05-01-2013 03:58 PM
Last Post: Salman
  4,000MW to be added from Thar coal by 2015: CM Salman 0 4,071 05-09-2012 11:56 AM
Last Post: Salman
  Timely implementation of award of BUPs in G-14 ordered Salman 0 3,888 04-09-2012 12:09 PM
Last Post: Salman
  Goods Council Approves EU Trade Concessions for Pakistan Salman 0 4,147 02-09-2012 12:37 PM
Last Post: Salman
  CS orders implementation of Malir Expressway project Salman 0 3,228 01-05-2012 11:42 AM
Last Post: Salman
  Pakistan-Indonesia Business Forum launched Lahore_Real_Estate 0 3,136 10-17-2011 03:21 PM
Last Post: Lahore_Real_Estate
  Trade exhibitions promote int’l business in Pakistan Lahore_Real_Estate 0 3,450 06-18-2011 11:24 AM
Last Post: Lahore_Real_Estate
  Business walk at PU Lahore_Real_Estate 0 2,862 04-14-2011 11:35 AM
Last Post: Lahore_Real_Estate
  Arts Council Main Kya Hota Hay??? LRE 0 3,708 12-24-2010 12:18 PM
Last Post: LRE
  Pakistan business team to visit Switzerland in 2011 Lahore_Real_Estate 0 3,729 12-10-2010 01:29 PM
Last Post: Lahore_Real_Estate
  Business centres for women being set up Lahore_Real_Estate 0 3,163 11-16-2010 01:49 PM
Last Post: Lahore_Real_Estate
  Malaysian Chapter of Pak-Malaysia Joint Business Council Launched Lahore_Real_Estate 0 3,734 10-29-2010 06:39 PM
Last Post: Lahore_Real_Estate
  About 20,000MW need to be added in 10 years Lahore_Real_Estate 0 2,925 10-05-2010 01:39 PM
Last Post: Lahore_Real_Estate
  White House supports civilian rule in Pakistan Lahore_Real_Estate 0 3,431 10-04-2010 02:23 PM
Last Post: Lahore_Real_Estate
  Rental plants back in business Lahore_Real_Estate 0 3,489 08-26-2010 11:21 AM
Last Post: Lahore_Real_Estate
  Khosa for amending rules of business Lahore_Real_Estate 0 2,968 07-15-2010 12:53 PM
Last Post: Lahore_Real_Estate

Forum Jump:


User(s) browsing this thread: 1 Guest(s)