SBP urged to pay drawback of local taxes

KARACHI: Exporters face acute liquidity crunch as huge amount of drawback of local taxes is pending against a large number of claims filed with the State Bank.
The ministry of textile industry in its five-year textile policy last September allowed drawback on local taxes and levies to the value-added textile sector to provide them a space in ever-rising cost of doing business.

Sales Tax collection on sugar falls 5.3pc

ISLAMABAD: Tax authorities have found that sales tax collection on sugar has declined by 5.3 per cent in the first eight months (July-Feb period) of the 2009-10 fiscal as it stood at Rs6.956 billion compared with Rs7.346 billion in the same period of the previous fiscal, it is learnt.

The declining trend has raised many eyebrows in the tax-collecting agency as every one knew the fact that the FBR has given extraordinary relaxations to sugar tycoons by reducing the rate to 8 per cent and fixed the price of sugar at Rs28 a kg for the purpose of deducting sales tax.

Exemption to construction sector may go under VAT

ISLAMABAD: Higher taxation is expected on the steel and construction sector after the implementation of Value Added Tax as all exemptions would be withdrawn under the new regime.
A study paper prepared by the Federal Board of Revenue (FBR) over the success of VAT said there is a special regime for steel sector except for PSM, HMC and Peoples Steel.

15% value added tax proposed: FBR

KARACHI: Chairman Federal Board of Revenue (FBR) Sohail Ahmed has said that 15 percent value added tax has been proposed.

Talking to Geo News, he said the draft proposal in this regards has been presented to the Parliament which, after approval, will be put into effect from July 1, 2010.

Industry fears VAT to affect tax collection

KARACHI: The industry fears that introduction of Value Added Tax (VAT) at this stage may disrupt growth in tax collection, and it may even prove counter-productive.

It is being argued that presently economy was not in a position to afford new jitters through experiments.

The industry feels that instead of introducing a new tax law, the scope of existing law be extended to untapped sectors.