KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to bring professionals into tax net as they are not documented despite earning huge money.
In its proposals for Budget 2019/2020, the apex trade body said that the professionals including doctors and lawyers should be taxed as large number of those professionals was not documented despite earning huge money.
The FPCCI said that the government should make a comprehensive policy to encourage the people to establish industries in the country.
The government should announce tax exemptions for 10 years to those who set up their industrial units within a time period of three years.
The FPCCI said industrialization would help increase in employment opportunities and it would also generate more revenues for the government through indirect tax.
Besides, industrial units should be provided cheaper electricity to make them more competitive.
The national chamber also suggested the government to expand the tax net by documenting the economy. It said that retailers and small shopkeepers should be brought into tax net but rate of tax on them should not be more than one percent.
Further, the FPCCI said that tax rates on immovable properties should be reduced in order to enhance valuation near to fair market value.
The FPCCI also demanded that the sales tax should immediately be reduced from current 17 percent to 15 percent and it should further gradually reduced by one percent per annum.
Corporate sector is heavily taxed at the rate of 29 percent which is too high and should be cut down to 25 percent. While, individual tax should be reduced as it is too much high at 20 percent.