LAHORE, Jan 25: More than 20 cottage industry and trade associations have stressed the need for redefining the cottage industry and replacement of income tax and sales tax by 0.75 per cent turnover tax for small-scale business.
The demands were voiced at a meeting of the associations convened by the Pakistan Industrial Associations Front at Kot Lakhpat Industrial Estate here on Sunday. Lahore Chamber of Commerce and Industry's cottage industry standing committee senior vice-chairman Malik Ghulam Sarwar presided.
The participants said only an industry employing 100 or more workers was considered a cottage industry abroad, but the industries employing even five workers were considered cottage units for the purpose of recovery of social security cess in Pakistan.
They said industrial units employing less than 10 workers should not be considered cottage industry for the recovery of social security cess. They said a fixed turnover tax should be recovered from the small industrial units and businesses instead of income tax and sales tax as they could not afford to hire accountants.
Speakers included PIAF chairman Shaikh Arshad, Cottage Industry Association senior vice-chairman Athar Ali Kazmi and secretary-general Khwaja Ejaz, Autoparts Traders Association president Haji Nasrullah andFootwear Industry Association secretary-general Anjum Khwaja.
