ICCI presents its budget proposals to the government
Islamabad : The Islamabad Chamber of Commerce and Industry (ICCI) has presented its budget proposals to the government with the demand that these proposals should be incorporated in the federal budget 2021-22 in order to facilitate the growth of business and economic activities in the country.
Chairing a meeting of the business community on budget proposals, Sardar Yasir Ilyas Khan, President, Islamabad Chamber of Commerce and Industry said that the chambers of commerce & industry were the key stakeholders in the economy and government should always finalize the federal budget in consultation with their Presidents that would help in boosting business and economic activities.
Sardar Yasir Ilyas Khan said that the highest slab of tax on rental income was up to 35%, which was putting extra burden on the taxpayers and urged that the government should reduce it to 10% that would promote tax culture, avoid tax evasion, reduce shop and office rents and help improve tax revenue of the country. He said that the turnover tax on all manufacturing sectors should be reduced across the board in the next budget from 1.5% to 0.5%. He said that the high GST has increased inflation and production cost in Pakistan, therefore, it should be reduced to at least 5% without input tax adjustment to help stimulate the ailing economy. He further said that the additional sales tax of 3% on industrial raw material should also be abolished to facilitate the revival of industrialization. He said that to enhance the tax base, the government should introduce 2 percent fixed tax for traders and shun the practice of attaching bank accounts of business community as it creates distrust and shatters the confidence of taxpayers.
ICCI President said that the taxes and duties on the import of plant, machinery and all products related to various industries including construction, real estate, tourism, medical, agriculture should be removed to facilitate upgradation of the industrial sector and production of value-added products that would boost our exports. He said that the import duties on luxury goods and vehicles should also be reduced significantly. The GIDC from gas bills of industrial and captive connections should be waived off to ease difficulties of industries and commercial entities.
Fatma Azim Senior Vice President and Abdul Rehman Khan Vice President ICCI said that the electricity costs should be reduced by Rs.5/per unit to encourage revival of all industries and make them more competitive for exports. They said that the policy interest rate should be cut down to 5 percent in order to encourage new investment and expansion of existing businesses. They hoped that the government would include ICCI budget proposals in the final budget for revival of business and economic activities.