Bags / Shoes & Accessories

The Pakistan Footwear Association (PFA) has put forward various proposals on income tax and sales tax in the 2021-2022 fiscal budget. In addition to income tax and sales tax recommendations, the Pakistan Footwear Association also put forward 25 recommendations including reducing various tariffs and implementing policies that are conducive to the shoe industry to promote and realize the "Made in Pakistan" strategy.

Regarding income tax, Mr. Muhammad Imran Malik, Chairman of the Pakistan Footwear Association (Muhammad Imran Malik) proposed to carry forward the income tax surplus paid this year to next year and adjust it according to the income tax payable next year.

The minimum income tax should be exempted. Similarly, the depreciation of factory facilities, machinery and equipment should be restored to 50%, and the depreciation of buildings should be restored to 25%.

The tax credit for investment is restored to 10%, and is based on income.

In addition, companies in green industries and special industrial zones are exempted from dividend income tax. Gradually adjust the corporate income tax from 29% to 25%, and cancel the pre-paid income tax.

Shareholder dividend tax has been reduced from 15% to 10%, and the period of corporate losses has been extended from 5 years to an indefinite period.

Similarly, with regard to sales tax, the sales tax for retailers will be reduced to 8%, the additional tax should be part of the output tax, the sales tax for small retailers and wholesalers should be adjusted from 17% to 10%, and the sales tax refund will be based on The business tax is adjusted, and the STA should implement a feasible solution for the income tax that should be paid.

The Pakistan Footwear Association also recommends strict implementation of the submission date of Form C, from the end of the month to the 10th of the following month, to include unregistered business units in the first tax collection system.