Sunday, July 3, 2022

Beverage industry to shut down if new taxes imposed: Siraj Kassam Teli

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KARACHI: Chairman Businessmen Group, Siraj Kassam Teli, has demanded the federal government to avoid the imposition of new taxes on the beverage industry, ARY News reported on Friday.

Siraj Kassam Teli expressed his concerns over the expectation of new taxation beverage industry in his letter sent to Prime Minister Imran Khan.

He stated that the beverage industry would be closed if new taxes imposed on it. Teli urged the federal government to find out alternative solutions for gaining additional revenue.

The former president of the Karachi Chamber of Commerce and Industry (KCCI) said that the burden will have to bear by consumers after hiking taxes.

Read More: Tax authorities propose hike in GST rate, other taxes in upcoming budget

Teli suggested the federal government to impose a ban on imports of vehicles and other luxury items for the next two years instead of enforcing new taxes on local industries.

On May 27, the federal tax authorities had proposed some unpopular decisions with regard to sales tax in the next budget.

The tax authorities proposed reversing exemptions to the tune of Rs. 70 billion at various items and also recommended 40 billion rupees new taxes in the upcoming budget.

The tax authorities also proposed to abolish concessionary tax rates charged on the sales of sugar, steel, edible oil, imported raw material and semi-finished goods aimed at generating maximum possible revenues.

Read More: Common man to get relief in next budget, says Hafeez Sheikh

The standard rate of General Sales Tax (GST) recommended to increase from existing 17 percent to 18 percent. The one percent hike in GST will generate additional 40 billion rupees in revenues, sources said.

The sales tax on sugar will be increased from existing seven percent to 18 percent in the new budget, while sales tax on edible will be enhanced from five percent to 18 percent, sources said.

There is also a proposal to hike sales tax on tractors from existing five percent to 18 percent.

The Finance Ministry had officially sent out proposal to PM Imran Khan that the date of federal budget 2019-20 should be fixed to June 11 – 2019.

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