In order to improve the country’s ease of doing business ranking, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has recommended the government to allow 100pc adjustment of input tax by removing the discrepancy created by Section 8B of Sales Tax Act.
In a press statement issued on Wednesday, FPCCI President Mian Nasser Hyatt Maggo said that this restriction not only restrains taxpayers to claim their legitimate input tax but also affects the ease of doing business, thereby increasing the cost of business.
FPCCI has already informed the concerned authorities about impediments that were negatively impacting economic growth, he said, adding that under Section 8B of the Sales Tax Act, 1990, a registered person was not allowed to adjust input tax in excess of 90pc of the output tax.
“At present, global and domestic conditions are completely different as Covid-19 has changed the world economic situation dramatically, with most businesses struggling for survival. In these circumstances, removal of anomalies would help promote trade and business,” he opined.
Naseer Hayyat extended his chamber’s complete support and cooperation to the government, which was striving hard to improve the economic environment amid adverse conditions created by Covid-19.
