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Karachi contributes 60-70pc of revenue
KARACHI - Federal Board of Revenue Chairman Sohail Ahmad has said the Karachi contributes 60-70 per cent of the revenue to national exchequer.
At a discussion organized by the KCCI he announced that the committees for direct and indirect taxation and Customs will be formed.
The KCCI had organized a discussion, in which it was highlighted the budget anomalies, confusion and issues in the new taxes imposed in recent Budget.
FBR Chairman suggested KCCI to nominate representatives to discuss the budget anomalies. He said that previous tax policies would continue and assured them that no harassment would be done in future.
FBR chairman accepted the fact that business community is in confusion with GST and VAT. He elaborated that the Finance Minister Hafeez Sheikh is reviewing policies; very soon clarifications would be made public. He assured that nothing will be done without consultation of the stakeholders.
President Karachi Chamber of Commerce and Industry (KCCI) said that there were lot of expectations from this democratic Government but the policies were the same. The domestic industrial growth, self-reliance of business community and issues of businessmen and a commonman were not on Government priority. Business community is also waiting for the special committee to be addressed anomalies.
Zubair Motiwala, Advisor to Chief Minister, VC BMG and Former President KCCI suggested FBR to do consultative sessions with business community on VAT and remove confusions. There should be clear classification between services sector and manufacturing sector.
He said there should be no customs duty on these five sectors like Textiles, Leather, Surgical goods, etc as they are the main contributors to exports.
Giving the example of textile sector, Motiwala added that today textile industry is in crisis as the cost of yarn has been doubled; liquidity has been reduced to an alarming level. And at present when the burden is added with multiple taxes, Government should also give attention to the raise in tariffs of electricity and gas. In addition, Shipments usually takes 3-6 months that will dry up liquidity and it is like an interest free loan to the Government.
He also highlighted that WHT is imposed on service industry; the vending sector in automobile industry dont make that much to give that tax, hence proper classification needs to be done. Small refunds are pending from many years, even a small refund of 50-60,000 is still not released. Reference to ATTA, Motiwala added that he has forwarded Government suggestions on the list of 20 sensitive items which includes tea, dry milk, electronic goods, etc should be specially monitored, also the usage of these items in Afghanistan needs to be scrutinized. Moreover, the trade should be done through LCs and authorized banking channels. Motiwala also acknowledged the achievements of FBR particularly in Customs and various other departments. He suggested that opening of Letter of Credit in a bank would solve half the problems in ATTA. He also mentioned about proposal of using advance tracking and monitoring devices on shipments to Afghanistan. The number of Audits and notices has been increased seriously and I am a witness to it. Certain powers delegated to Commissioner level needs to be restored back to FBR.
The power of assessment and hearing should not remain with the same person. The attitude of FBR towards the taxpayer should be friendly and there is a drastic need for a positive change Motiwala added.
Karachi contributes 60-70pc of revenue | The Nation
The above statement is from Chairman FBR.
The fact remains Karachi LTU collects 70% of revenue which is spent all over Pakistan. Do some research on Lahore LTU.
Your analogy is incorrect. The reason I have repeatedly mentioned. Had that been the case then Karachi being at a standstill wouldn't make much of a difference right? according to you Punjab is the driving force then please answer why does PAKISTAN lose billions of dough as a result of disruption in Karachi? you have no answer to this question.
Never denied Punjab's share. However, I know for a fact Karachi accounts for 30+% of national GDP.
Where is the report ??? i am asking reports not saying FBR Chairman