KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) submitted taxation proposals for the upcoming 2017-18
Punjab budget representing the collective recommendations of foreign investors.
Commenting on the OICCI
Punjab Province Taxation Proposals, OICCI President Khalid Mansoor said “OICCI Members commend the initiative being taken by the
Punjab Government and
Punjab Revenue Authority in broadening the reach of its coverage to 45000 registered taxpayers already and its active engagement in building a conducive private public partnership among the key stakeho
lders”. It is desirable, President OICCI further said “ that
Punjab Government give a serious consideration to our taxation proposals which eventually will be a win win for the province, the country and the tax payers”.
The OICCI’s specific recommendations for inclusion in 2017-18
Punjab Budget include,
Punjab sale
s tax rates which is 16% on services should be reduced in 2017 budget at parity with Sindh sale
s tax rate of 13% and gradually reduced to 10% over the next three years, Agricultural Income should be taxed on actual, and not notional income, includin
g rent income of absentee landlords. This has also been OICCI recommendation for other provinces in Pakistan as well. Telephone usage sale
s tax rate of 19.5% percent, should be made equivale
nt to GST rate on services, Input Adjustment on Franchise Fee should be allowed to manufacturers, and this is also allowed in other provinces, Input tax paid by pharmaceutical industry and export of services by registered persons should be zero rated.
The OICCI Taxation Proposals for
Punjab also include recommendations for a better co-ordination between all Sales Tax authorities in
Punjab, Sindh, KPK and Balochistan and with FBR, a uniform definition of taxation of services and jurisdiction be agreed to facilitate the tax payers, and input of sale
s tax should be allowed as whole and not for the assets exclusively used in a province. Furthermore Federal and Provincial Governments should urgently address the issue of jurisdiction of WWF/WPPF and provide clarity to tax payers.
