President ABC Mr. Asif Peer (Systems Ltd.), Chairman Mr. Kamran Nishat (Muller & Phipps) and Co-chair Mr. Khurram Qamar (Philip Morris) of ABC’s Finance & Taxation Subcommittee led an exclusive meeting with Chairman FBR Mr. Asim Ahmad and his team on 28th April 2021.
Mr. Asif Peer began the discussion by expressing complete trust in the Government’s support on matters of national interest & international trade. Mr. Kamran Nishat, Mr. Khurram Qamar and Mr. Saad Salman (Muller & Phipps) went over high-priority agenda points of ABC’s Federal Budget Proposals 2021 – 2022 submitted to GoP.
The Finance & Taxation related recommendations presented were divided into 3 categories:
1- Broadening of Tax Base
2- Removal of Tax Distortions & Anomalies
3- Facilitation of Taxpayers & Ease of doing Business.
The following key issues relating to Finance & Taxation were deliberated in the meeting:
1- Mandating Digital Transactions beyond a certain amount.
2- Liability on Manufacturer
3- Illicit cigarette Trade and Excise Duty.
4- Elimination of Tax on POS at the import stage.
5- Federal Excise Duty on Merchant Discount Rate (MDR).
6- Deposit of withholding tax amount before making payment to Non-residents.
7- Annual Income tax withholding Certificate for withholding agents.
8- Tax Amortization Period for Intangibles.
9- Exemption of Sales tax on COVID related products.
10- Higher rate of Withholding Tax on Distributors and reduction in Turnover Tax.
11- Disallowance of Input Sales Tax.
12- Regulatory Duties on Raw and Packing Materials.
13- Import Valuation.
14- Tax holiday on exports of IT and IT enabled services.
15- Reduction in FED Rates – Beverage Industry.
The Chairman Mr. Asim Ahmad appreciated and validated the proposals submitted by ABC, assuring his team’s support in increasing documentation of economy and creating a level playing field for taxpayers.
Note: For elaboration on the issues, please check out our comprehensive document of The Council’s official Federal Budget Proposals submitted for the consideration of Government of Pakistan at https://abcpk.org.pk/wp-content/uploads/2021/06/Proposals-for-Federal-Budget-2021-2022.pdf