Islamabad: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) recently submitted its budgetary proposals to the government — with the association recommending the abolishment of the extra 3% sales tax charged on unregistered individuals, a news source reported. Back in 2017, the government had initially decided to levy an extra 1% in sales tax on the said citizens’ category (in addition to the usual 17%); with the rate later having been increased to 3%.
Additionally, the FPCCI has also recommended that the government should reduce the sale tax for five export-oriented sectors. Reportedly, officials from the FPCCI are set to the meet the with the government officials concerned soon to further discuss these proposals.
The Federal Board of Revenue (FBR) has recently shown a willingness to abolish the extra sales tax if the country’s businessmen officially register themselves with the department. The FBR had also contended that the extra tax had been imposed in order to encourage registrations, and that it has generated nearly PKR 40 billion in revenue for the board.
