- KCCI urges the government to eliminate VAT for commercial importers in the 2025-26 budget
- Proposes setting VAT at 0% for commercial importers to ensure uniform tax treatment
- Current VAT of 3% on commercial importers creates financial strain and market distortions
- Only 90% of Sales Tax is adjustable, causing cash flow issues for manufacturers
- Industrial importers are exempt from VAT, leading to unfair trade conditions
- Retaining 3% VAT increases tax burden, consumer prices, and slows industrial growth
- Elevated taxes may lead to job reductions and hinder fair trade practices
- KCCI highlights unfulfilled promises by FBR regarding tax adjustments
- Removing VAT would provide financial relief, support SMEs, and stabilize prices
- Reform would enhance policy consistency and promote economic growth
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
