Trade: (Single digit sales tax demanded to spur growth)July 25, 2015
ISLAMABAD: Chairman of the United International Group Mian Shahid on Sunday asked the government to enforce single digit sales tax to spur economic growth.
Single digit sales tax have a very positive impact on the overall business environment and settle issue of refund claims and input taxes while reducing complaints regarding transparency, he said.
Mian Shahid said that government should impose single digit non-refundable sales tax on manufacturing to streamline things. He said that sales tax in Taiwan is five percent, its six percent in Malaysia, seven percent in Iran and eight percent in Japan while it is seventeen percent in Pakistan for filers and nineteen percent for non-filers.
The business leader said that single digit sales tax will reduce inflation as well as smuggling providing relief to common man while government would save additional 1500 billion rupees in revenue. Revisiting sales tax regime would help revival of many sick units and trigger industrial expansion across Pakistan, he added.
Single digit GST will create multiple benefits for the economy as it will create a conducive environment for growth of trade and industry, enhance purchasing power of people, boost business activities and attract more investment. Government should not burden existing taxpayers but widen the tax base to improve income to be used on the welfare of masses, he demanded.