ISLAMABAD: Adviser to Prime Minister on Commerce Abdul Razak Dawood on Thursday proposed reduction in indirect taxes such as the GST rate and asked for better collection of direct taxes for providing relief in the coming budget.
“The better collection of direct taxes will make room for providing relief to the formal documented sectors of the economy by reducing indirect taxes like sales tax,” the adviser pointed out while chairing the Tariff Policy Board meeting here on Thursday.
The meeting was attended by secretary, Ministry of Commerce, secretary,Ministry of Finance, chairperson, Federal Board of Revenue, chairperson National Tariff Commission and representatives of the Ministry of Industries and Production and Board of Investment. In the meeting, the customs tariff related proposals for the upcoming federal budget for fiscal year 2020-2021 were discussed.
The meeting also discussed the economic impact of the ongoing Covid-19 pandemic and deliberated upon ways and means to avert the financial losses to the businesses. The adviser desired that due to negative impact of Covid-19 emergency on the economy, it is imperative to devise policies for growth and progress of all sectors of the economy. He emphasized that a Win-Win situation for everyone, including the government exchequer, may be created.
He pointed out that better collection of direct taxes will make room for providing relief to the formal documented sectors of economy by reducing indirect taxes like sales tax. The participants vowed to rationalize the current tariff regime by analyzing the impact assessment of different tariff relief measures taken in the previous fiscal years. It was decided that there would be multiple sessions of the Tariff Policy Board and the sub-committee of the board to finalize the proposals well in time.
Meanwhile, in a tweet, Razak Dawood said that other than surgical and N95 masks, export of all other masks will be allowed, regardless of their composition. Notification will be issued by the FBR soon, he added.
He also stated that export of rice was discussed with the prime minister and his office was issuing a clarification that export of rice was allowed. Once again, in time of crisis, Pakistan has proven to be a reliable supplier of export goods, he added.
“I appeal to all REAP members to aggressively pursue our rice exports and keep on increasing our market share in the world,” he added.