Every company should pay 16% of their profit to Punjab Revenue Authority: Chairman PRA

Chairman Punjab Revenue Authority (PRA) said that every company should pay 16% of their profit to Punjab Revenue Authority (PRA) to generate revenue for the well-being of Punjab.

Mr. Zain Ul Abidin Sahi, Chairman PRA was addressing at a seminar organized by Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) today on “The Role of Punjab Revenue Authority (PRA) for the business community and awareness regarding Tax on Services”. Mr. Zarak Khan, President PCJCCI presented address of welcome on this occasion.

Mr. Zain ul Abidin Sahi, while addressing the seminar, said that government of the Punjab had established a semi-autonomous organization named as the Punjab Revenue Authority (PRA) to collect and enforce sales tax on services.

It has also enacted the Punjab Sales Tax on Services Act, 2012 in super-session of the Punjab Sales Tax Ordinance, 2000 (as amended from time to time), he said.

Punjab has reached 68 services covered under the repeated ordinance; hotels, restaurants, beauty salons, construction, courier service, dress designers, doctors, telecommunication etc, he added.

He further told that the private and public withholding tax system was very important for awareness of the business community, who did not kept adequate information regarding this particular section.  Every company has to pay 16% of their part to PRA for generating revenue for well-being of the Punjab.

Mr. Zarak Khan said that the provincial tax systems in Pakistan are more or less based upon a colonial legacy. The dawn of 21st century has seen a visible change in the governance patterns at national as well as at sub-national levels especially in the developing countries, he said adding that reforms in tax regimes had been initiated as an important component of overall fiscal-economic reforms.

In this regard, Pakistan has also suitably modified its fiscal federalism, under which public service responsibilities of the Provincial governments have been expanded along with creation of several prudent opportunities for the Provinces to mobilize their own resources, he said and assured of taking efforts to make PCJCCI an effective bridge between business community and the government.

He said that PCJCCI was keen to setup Tax facilitation centre for the Chinese business community working in Pakistan.

Mr. Moazam Ghurki, Senior Vice President PCJCCI, speaking on this occasion, said that Traders and businessmen had come to know about new sales tax on services two and a half years ago because of PRA’s field efforts. We should respect PRA’S work because they are trying to generate revenue for the prosperity of Punjab.