KARACHI: Finance Minister Ishaq Dar has agreed in principle to rectify some of the flaws in the finance bill in order to allay the concerns of the business community, according to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday.
Mr Dar agreed to look at a list of inconsistencies submitted to him by the FPCCI on income tax, withholding tax, sales tax, FED, and customs in order to boost investment sentiment in the country, according to FPCCI chief Irfan Iqbal Shaikh.
Mr Shaikh stated that one of the most critical demands acknowledged by the finance minister was that steps be done to bring more individuals into the tax net rather than squeeze existing taxpayers.
According to a news statement, the FPCCI chief informed Mr Dar that it had already been agreed that parity would be applied to industrial and commercial raw material importers for income tax purposes via WHT.
As part of the agreement, additional activities such as logistics, goods carriers, and oil transporters will be handled equally.
Section 99-D of the ITO was also discussed, and it was agreed that taxing solely gains, earnings, and dividends without accounting for losses and other adverse economic circumstances is unjustified.
The reinstatement of a 10% tax on bonus shares will also be discussed.
Mr Sheikh emphatically opposed the super tax under Section 4-C of the ITO as being counterproductive to the country’s corporate, commercial, and industrial activity, stating that “we cannot punish the business community for generating revenues, employment, and making justified profits.”
