September 27, 2020

Commerce Division To Propose Phasing Out Double Taxation System At Import Stage

The standing committee of the Senate on Commerce and Textile Industry conducted a meeting with the Commerce Division to discuss the issue of multiple taxes at the import stage. The meeting was chaired by Senator Muhammad Afridi who requested the Advisor to PM on Commerce Mr. Abdul Razak Dawood to form a mechanism to simplify the taxation procedure for imports and phase out the multiple taxation system.

The members discussed the effects of infrastructure taxes imposed by the Sindh and Punjab governments on the imports. The committee asked Mr. Abdul Razak Dawood to discuss the matter with the PM. The matter was also raised by the Leader of the House Shibli Faraz, who proposed passing a bill for creating a framework of single taxation and getting rid of double taxation system, to make business operations easier and hence facilitate investors.

The committee further discussed the improved condition of the country’s exports and discussed potential markets for further enhancing them. The members discussed the Look Africa Policy, through which Pakistani industries are searching different potential markets for their products. Commerce Advisor Abdul Razak said that the industries are already supplying Air Conditioning units and engineering goods such as tractors in some African markets and are planning to expand the market share even further. The members also discussed exporting the goods to the European Union and highlighted the point that the industries need to make their products more competitive. Abdul Razak Dawood further added that the textile industry’s exports have increased and would improve even further in the near future. He also highlighted the duty-free access of $1 billion worth of Pakistan’s goods in Chinese markets under the China FTA-2 agreement and added that this would give a boost to the local economy.

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