20000101

Govt negotiator, traders

meet today to discuss

Sales Tax Act clauses

RECORDER REPORT

KARACHI: The recently appointed Chief Negotiator on sales tax matters, Riaz Malik, will meet members of the business community at the Federation House here on January 1, 2000, at 1 p.m. to exchange views on clauses of the sales tax act which are agitating them.

The Federation of Pakistan Chambers and Commerce has invited presidents and Chairmen of all the chambers and associations or their nominees to attend this important meeting to present their point of view to enable the government arrive at some amicable solution to this issue.

The FPCCI feels very strongly on the issue of sales tax and has been conveying its resentment for the last several months but the previous government instead of finding a solution to the problems made things more complicated.

With the change of government the issues were again highlighted by the FPCCI and a detailed rundown was given on sales tax in its memorandum on revival of national economy to Finance Minister, Shaukat Aziz during his visit to the Federation House here in November for exchange of views with members of the business community.

Since Shaukut Aziz had promised to have a deep look into the issues raised by the FPCCI, its members are pinning great hopes in the new finance minister who enjoys the confidence of the Chief Executive, Gen. Pervez Musharraf, for the solution of their grievances.

The FPCCI feels that the tax system in practice in this country is a big source of harassment to the tax paying documented sector of the economy. It is also the biggest hurdle in the revival of national economy. The punitive laws have increasingly been made severe. The powers given to the sales tax authorities are vast and authoritative. The previous governments tried to enforce sales tax across the board as a convenient replacement of the custom duty without realizing that our economy is largely undocumented and sales tax which is a value added tax can only be introduced in a fully documented economy.

Angry members of the business community are flexing their musles to confront Riaz Malik with their long standing demand with regard to multiplicity of taxes. FPCCI and its members have been demanding since long for doing away with the multiplicity of taxes so that the businessmen do not have to deal with numerous tax collecting agencies and their staff. It had been demanded that there should be one agency collecting the various labour levies which should be later apportioned to the different agencies. The previous government had constituted a Task Force to examine the demand for one window operation for collection of levies for labour welfare and to submit its recommendations for removal of difficulties confronted by industrial undertakings and business establishments at the hands of multiple levy collecting agencies. FPCCI had suggested that the said Task Force be asked to present its report to the government urgently.