Pakistan Footwear Association has suggested its recommendations about the Income & Sales Tax in the forthcoming 2021-2022 Financial Budget.
Besides Income Tax & Sales Tax, the 25-point recommendations include suggestions to reduce various duties & tariffs. In addition, to implement policies that benefit the footwear sector In the country to aggressively promote and pursue the “Made In Pakistan” policy.
The recommendations proposed by Mr. Muhammad Imran Malik, Chairman Pakistan Footwear Association, about Income Tax include:
- The surplus Income Tax amount paid this year should be carried forward next year and adjusted against the Income Tax due next year.
- Exempt from minimum Income Tax
- The percentage of Depreciation Allowance for the Plant, Machinery and Equipment to be reinstated stored at 50%, and for the buildings, it should be restored to 25%.
- And the tax credit for investment to be restored to 10%
- Instead of the Business, the Income should be made as to the base.
- Exemption of Income-tax on dividends for the companies in the Green Field Industries & the Special Industrial Zones.
- Gradual adjustment of the Corporate Income Tax from 29% to up to 25%
- Abolishment of Advance Income Tax
- Tax charged on the Shareholder’s dividend to be reduced from 15% to 10%.
- Request to extend the term for Business losses from 5-years to unlimited.
Similarly, for the sales tax.
- Sales tax on Retailers to be reduced up to 8%
- Additional tax should be a part of the Output Tax
- Sales tax on Small Retailers & Wholesalers tax should be brought from 17% to 10%.
- Sales Tax Refund to be adjusted against the Sales Tax.
- Viable solutions should be implemented at STA for the due Income Tax.
- Permit Zero ratings on Sales Tax against the IOU Manufacturing Bonds utilized against the purchase of locally manufactured material.
- Form C’s submission date to be strictly implemented from the end-of-the-month to the 10th of the following month.
- Unregistered dealers to be brought in the tax net.
- A business with a history of full compliance with FBR should be exempted to pay 14% instead of 17% on all materials.
- To evaluate prices, ITP valuation ruling should be made on a half-yearly basis.
- Water Treatment & Waste Treatment for all industries to be exempted from tax.
- To promote Made in Pakistan policy, duties to be waived off on all lab equipment used in the shoe manufacturing industry.
- DORD to be abolished on all raw material used for the shoe industry & should be brought on the lowest slab of the customs duty.
- And a humble request to the Government of Punjab to allocate land to establish the Pakistan Footwear Associate Institute at the Quade-e-Azam Business Park.