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KARACHI: Multinationals with operations in Sindh have demanded that the provincial government should integrate its tax collection bodies namely Sindh Revenue Board (SRB), the Ministry of Excise and Taxation and the Sindh Board of Revenue.
In a recent letter to SRB Chairman Dr Wasif Ali Memon, Overseas Investors Chamber of Commerce and Industry Secretary General M. Abdul Aleem called for simplifying the procedure for the filing of provincial sales tax returns.
“Provincial taxes should be consolidated, especially the labour levies like Employees’ Old-Age Benefits Institution, Sindh Employees Social Security Institution, Workers’ Profit Participation Fund, Sindh Workers Welfare Fund,” according to OICCI’s taxation proposals for the 2022-23 provincial budget.
“OICCI members... have noted with extreme concern that for the past two years none of their proposals have been accepted or given due importance by the government of Sindh/SRB,” said Mr Aleem, who heads the chamber of 207 foreign investors that pay one-third of the total taxes collected in the country.
The proposals state that no new taxes should be levied during the fiscal year while tax authorities should use technology and data analytics to ensure that all income earners from services are included in the provincial taxpayers’ list.
The government should extend preferential treatment to active filers when they apply for utility connections. Moreover, it should require marriage halls, art exhibition halls and other public places holding large receptions to provide names and addresses of the respective persons involved in these business activities to the provincial tax authorities on a quarterly basis.
OICCI demanded that a policy board be formed to ensure synchronisation of policies, standard taxable services, basis of apportionment of revenues and removal of all anomalies and conflicts between the laws of different revenue boards.
The proposed body should decide on matters like the basis of levying indirect tax, which can be origination or termination, and establishing jurisdiction of taxation of services.
Currently, the sales tax rate on telecommunication services is 19.5 per cent. This should be brought on a par with other services, it said, adding that it should be equivalent to the general sales tax rate on services in order to ensure rate harmonisation. “This will increase tax collections by helping telecom operators tap the lower-income population of Pakistan,” it said.
Published in Dawn, April 15th, 2022
