Chain Stores Association of Pakistan (CAP) has expressed opposition to the proposed Finance Bill, which aims to increase the General Sales Tax (GST) from 17% to 18%. According to CAP chairman Rana Tariq Mehboob, the new taxation measures will be detrimental to traders and will exacerbate the current financial crisis.
Mehboob expressed worry that the new tax policies would have a negative impact on business and industry as well as consumers’ purchasing power, creating serious difficulties for the manufacturing sector. Instead of raising taxes for those who are already burdened, he urged the government to widen the tax base and concentrate on bringing in new tax paying citizens.
Mehboob brought up the fact that only a small portion of retailers pay taxes, giving the formal sector an unfair competitive advantage. He also mentioned how the local economy was already suffering from factors such as inflation, rupee depreciation, high energy prices, and rising commodity prices.
In order to address the imbalances and aid the nation in achieving its economic growth goals, Mehboob urged the government to adopt long-term sustainable economic policies. Additionally, he advocated for facilitating the import of raw materials and suggested that the government cease collecting the levy on point sales if the promised return was not guaranteed.
The proposed tax increase would occur in the midst of Pakistan’s struggling economy, which is characterized by high inflation rates and a balance-of-payments crisis. Businesses are worried that the proposed tax increase will only exacerbate their already precarious financial situation as the nation struggles to meet its growth targets.
The CAP’s stance emphasizes how urgent it is for the government to look into alternate revenue sources and put policies in place to encourage economic growth. It is crucial to pursue policies that will support businesses, lower inflation, and raise the standard of living for all Pakistanis as the nation struggles with economic issues.
