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#	Business Activity	PSIC	Regulatory Department	Regulatory Requirements Causing Difficulty	Nature of Difficulty	Proposal for Simplification	Proposal Category	Proposing Organization
1	Technical Testing & Analysis	7120	Federal Board of Revenue	Indirect Taxes	Withholding Tax & Minimum Tax on Revenue deduction at source u/s 153 1(b) causing heavy cost to the industry	Service industry is taxed on revenue and not on corporate profits (EBIT). The %age of minimum tax on revenue is 3% and it is difficult to absorb this cost from the minimal margins under services business. However, other sectors are being tax on corporate profits @ 29% which is contrary to the service sector. Therefore, clause of minimum taxation on revenue should be abolished.	Policy	ICCI
2	Technical Testing & Analysis	7120	Federal Board of Revenue	Tax Refunds	Pending tax refunds in FBR are causing adverse effect in cash flow management of the industry. Service sector pays heavy taxes in advance throughout the years (in shape of minimum tax) while determined tax at the end of the year is quite less than the paid amounts. Hence, cash is blocked up and new ventures and future business growth is affected due to shortage of working capital.	Govt. should advise FPR to release the pending tax refunds to the service sector organizations (without conducting tax audits) in order to alleviate the economic burden being faced by the industry. Secondly, till the time refunds are not released the concerned business entities must get the tax exception certificate as a matter of relief not to pay minimum tax @ 3% i.e. present rate) in advance.	Policy	ICCI
3	Technical Testing & Analysis	7120	Federal Board of Revenue / Punjab Revenue Authority / Sindh revenue board / KPK revenue authority	15 days for submission of GST after issuance of invoice against services provided	In this case service provider pays the sales tax amount on behalf of customer in advance which seriously crate challenges in cash flow management.	Sales tax should be paid at the time of receipt of payment instead of by the recipient to the service / customer issuance of sales tax invoice. The payment time of sales tax should be at least 75 days after issuance of the sales tax invoice.	Policy	ICCI
4	Technical Testing & Analysis	7120	Federal Board of Revenue / Punjab Revenue Authority / Sindh revenue board / KPK revenue authority	Higher rates of imposing sales tax i.e. ICT @ 16%, PRA @ 16%, SRB 13%, KPK @ 15%	Higher rates of sales tax crate unnecessary burden on the customer side in terms of cash flows i.e. over and above impact on contract value.	The %age of sales tax on services shall be revised to a flat rate 5% overall. And this Sales Tax should be adjustable / admissible at the time of filing of monthly Sales Tax return instead of paying it in advance (under low margins and recovery challenges we have to pay advance sales tax in spite of the fact that payments are delayed from the client).	Policy	ICCI
5	Technical Testing & Analysis	7120	Punjab Food Authority	Acknowledgement of expertise	PFA is creating its own market even without having expertise in all food related sectors	PFA should come up with collaboration with bodies who have international exposure.	Policy	ICCI

Reform Activities

activity_id	Department	Jurisdiction	Month	Year	Reform Name	Evidence
1	State Bank of Pakistan	National	December	2020	State Bank removes the condition of filling the Form-E for small exporters.	Evidence
2	Government of Sindh	Sindh	December	2020	Sindh e-Stamp Rules, 2020 for the Payment of Stamp Duty notified	Evidence
3	Sindh Building Control Authority	Sindh	November	2020	SBCA Complaints Android App Launched	Evidence
4	State Bank of Pakistan	National	November	2020	Governor SBP launches Digitization of FX Regulatory Approvals	Evidence
5	State Bank of Pakistan	National	December	2020	SBP issues Regulatory Framework to Facilitate Business To Consumer (B2C) E-Commerce Exports	Evidence

Project Activities

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