News & Events

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 28^th 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