Government halves fixed tax for non-filers: KCCI – Newspaper
KARACHI: Finance Minister Miftah Ismail has announced a plan to reduce the fixed tax rate to Rs3,000 for non-filers from Rs6,000 on electricity bills, in addition to exempting consumers whose bills reached up to 150 units.
A press statement in this regard has been issued by the Karachi Chamber of Commerce and Industry (KCCI) referring to a zoom meeting held between the Minister of Finance, Chairman of Businessmen Group (BMG) Zubair Motiwala, KCCI Chairman Muhammad Idrees and small traders on Monday evening. .
Several business bodies have staged protests against the Rs 6,000 tax introduced in the Finance Act 2022.
The Minister of Finance has promised to remove all other taxes from electricity bills once the flat tax regime is activated to avoid double taxation. Only the GST on electricity consumption will be applicable and at the end of the year they will be required to present a document to inform the tax authorities of the payment of taxes during the year. He also agreed to consider demand from small traders when raising the threshold.
During the session, KCCI executives expressed concerns about the high rate of taxes levied on electricity bills. They argued that commercial consumers already pay several taxes on their monthly electricity bills, including fuel adjustment surcharge, electricity tax, income tax, general sales tax , the additional GST and the additional GST.
KCCI management has urged the government to accept the genuine demands of small entrepreneurs who are already struggling to make ends meet and increase the suggested threshold of 150 units of electricity consumption from the fixed tax scheme and scrap other taxes on electricity bills.
Posted in Dawn, August 3, 2022