00:00Number three, mobile phones are allowed to be taxed at an 18% standard rate.
00:06Concessionary rates create distortions in the market,
00:12while the standard rate ensures that everyone has access to equal opportunities
00:17and that the market forces can operate efficiently.
00:20Due to various reasons, it is recommended that the standard rate of sales tax
00:25be applied on different categories of mobile phones.
00:29Number four, the application of sales tax withholding on scrap metal, coal, paper and plastic.
00:36At present, the sectors related to scrap metal, coal, paper and plastic are unorganized
00:42and their contribution to the national treasury is negligible.
00:46In these sectors, it is recommended that the sales tax withholding regime be implemented.
00:53Mr. Speaker, now I will come to some streamlining measures.
00:58The application of exemption on iron and steel scrap.
01:02It is recommended that iron and steel scrap be exempted from the sales tax.
01:06It has been seen that registered persons buy scrap from the market without a sales tax charge.
01:12Therefore, they do not have an input tax, according to which they can adjust the output tax.
01:18Fake flying invoices are made to fulfill this deficiency.
01:23It is recommended that iron and steel scrap be exempted from the sales tax
01:29and that the fake flying invoices be abolished.
01:33It is recommended that the default surcharge rate be equal to the policy rate.
01:38At present, the fixed rate of 12% per annum is applicable on unpaid sales tax and FED.
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