06-24-2009, 03:15 PM
Omeir,
Please go through
<b><u>SALIENT FEATURES FOR THE BUDGET 2009-10</u>, </b> <u><b>Revenue Measures</b></u> The following is being quoted from there,
⢠"Before amendment made through Finance Act, 2008 withholding tax on imports was collected @ 5% which was reduced to 2%. The benefit of reduction in tax rate could not be passed on to end users therefore, the rate is proposed to be enhanced to 4% across the board."
Apparently, It may be said that , Import Tax was reduced to 2% on the grounds that end users will be benefited, <b>(Since Tax reduced to 2%, prices of import goods should have been reduced but no benefit seen as envisaged,)</b> on account of tax reduction, since no benefits to general public, rate has been increased upto 4% ,i.e.
When benefit is not provided to end users and importers started increasing their own income, then why not this income should be generated in favour of FBR instead of Importers?
Best Regards,
Please go through
<b><u>SALIENT FEATURES FOR THE BUDGET 2009-10</u>, </b> <u><b>Revenue Measures</b></u> The following is being quoted from there,
⢠"Before amendment made through Finance Act, 2008 withholding tax on imports was collected @ 5% which was reduced to 2%. The benefit of reduction in tax rate could not be passed on to end users therefore, the rate is proposed to be enhanced to 4% across the board."
Apparently, It may be said that , Import Tax was reduced to 2% on the grounds that end users will be benefited, <b>(Since Tax reduced to 2%, prices of import goods should have been reduced but no benefit seen as envisaged,)</b> on account of tax reduction, since no benefits to general public, rate has been increased upto 4% ,i.e.
When benefit is not provided to end users and importers started increasing their own income, then why not this income should be generated in favour of FBR instead of Importers?
Best Regards,
