Lahore: Lahore Chamber of Commerce and Industry (LCCI) Acting President Tanveer Ahmed Sheikh Wednesday welcomed the indication by Federal Board of Revenue (FBR) regarding the possible complete withdrawal of Super Tax and reduction in the sales tax rate.
He termed it a positive step towards reducing the cost of doing business and promoting economic activity in the country.
He added that business community has long been advocating rationalization of the tax burden on the existing taxpayers. Super Tax adds to the financial burden on businesses and affects their ability to invest, expand operations and generate employment.
Tanveer Ahmed Sheikh urged the government and FBR to move forward with complete withdrawal of Super Tax, saying that such a measure would provide much-needed relief to the business community, improve business confidence and encourage both domestic and foreign investment.
He said that at a time when businesses are facing high input costs, energy prices and other operational expenses, reduction in the tax would significantly help in bringing down the overall cost of doing business and improve the competitiveness of Pakistani industry.
Acting President LCCI also welcomed the indication regarding a possible reduction in the sales tax rate. He said that a lower and more rational sales tax rate would reduce the burden on businesses and consumers, encourage documentation and help expand the formal economy.
He emphasized that the government should focus on broadening the tax base rather than increasing the burden on existing taxpayers. Bringing new sectors and untaxed businesses into the tax net would help enhance government revenues while creating a fair and balanced taxation system.
Tanveer Ahmed Sheikh expressed hope that the positive indications given by FBR would soon be translated into concrete measures. He said that a predictable, simple and business-friendly tax regime is essential for accelerating industrialization, attracting investment, creating employment and putting the economy on a sustainable growth path.
