Engr. Muhammad Azhar ul Islam Zafar, Vice President, Islamabad Chamber of Commerce & Industry (ICCI) said that Pakistan has great potential to enhance the exports of furniture products by focusing on the furniture industry and urged that the government should resolve tax issues of this industry to facilitate its better growth. He said that tax authorities and field formations of FBR are issuing notices to furniture showrooms/shops to register as Tier-1 retailers, which is not practicable for all furniture businesses and urged that the furniture showrooms/shops covering area less than 2000 square feet should be exempted from sales tax registration to ease their problems. He said this while addressing a delegation of Pakistan Furniture Association that visited ICCI led by its Chairman Zahid Hussain. Mian Muhammad Ramzan Convener ICCI Tax Committee, Khalid Chaudhry former Senior Vice President ICCI and others were present at the occasion.

Engr. Muhammad Azhar ul Islam Zafar said that the small furniture retailers should not be subjected to Sub-Sec-43A of Sec-2 of Sales Tax Act 1990 as they purchase furniture from unregistered manufacturers of the cottage industry and cannot provide input invoices. He said that those retailers who occupy even one square foot less area than 2000 sq. ft. are exempted, which creates an anomaly. He assured that ICCI would cooperate with the Pakistan Furniture Association in resolving key issues of the furniture industry.'

Speaking at the occasion, Zahid Hussain, Chairman, Pakistan Furniture Association stressed that the government should introduce fixed sales tax of Rs.5000/month for furniture showrooms/shops covering area of above 2000 sq. ft. up to 5000 sq ft., Rs. 10,000/month for showrooms/shops covering area of above 5000 sq. ft. up to 10,000 sq. ft and Rs.15000/month for showrooms/shops covering area of above 10,000 sq. ft up to 15,000 sq. ft. He said that such a fixed tax regime would protect the furniture businesses from unnecessary harassment and facilitate better growth of their business activities.

Mian Muhammad Ramzan, Convener, ICCI Tax Committee said that the furniture showrooms/shops which are not part of a national or international chain store nor are they located in air-conditioned malls, should be excluded from the category of Sub-Sec-43-A of Sec-2 of Sales Tax Act 1990 and should be declared as cottage industry with inclusion in Tier-2 regime.