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FPCCI Pursues 100 Percent Adjustment of Input Tax

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has advised the government to permit 100% adjustment of input tax by resolving the anomaly caused by Section 8B Sales Tax Act in order to raise the nation’s rating for ease of doing business.

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According to a news release from FPCCI President Mian Nasser Hyatt Maggo, this limitation prevents taxpayers from deducting their lawful input tax and interferes with business operations, which drives up expenses.

He added that, in accordance with Section 8B of the Sales Tax Act of 1990, a registered person was not permitted to modify input tax above 90% of the output tax and that FPCCI had already informed the relevant authorities about obstructions that were detrimentally affecting economic growth.

In spite of the challenging circumstances brought on by COVID-19, Naseer Hayyat offered the government the full support and cooperation of his chamber.

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