Pakistan could increase taxes on leather products
16/05/2016
The change would form part of a plan to raise approximately Rs13 billion ($12.4 million) in additional revenues from the next fiscal year and would also see these sectors lose their exemption from the 5% withholding tax on electricity.
The proposal was presented to Prime Minister Nawaz Sharif by the Federal Board of Revenue (FBR). According to reports in Pakistan, the FBR wants an increase in tax on yarns and fabrics from 3% to 5%. It also claims that a doubling of tax on garments from 5% to 10% would create additional revenue of Rs10 billion ($9.6 million).
The FBR believes that withdrawing these sectors’ exemption from withholding tax on electricity bills would raise a further Rs3 billion ($2.9 million). The withholding tax exemption for exporters would remain under the proposal.
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