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RCCI urge FBR to address anomalies in budget 2020-21

DNA

Rawalpindi: The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged Federal Board and Revenue (FBR) to address the anomalies created due to various measures in the budget for FY2020-21, pertaining to Income Tax, Sales Tax, Federal Excise Duty and Customs.

RCCI president Saboor Malik in a statement said that the high rate of GST at 17 percent is a major factor in cost of doing business which affects the entire spectrum of trade and industry. RCCI in its budget proposals already proposed to lower it further to single digit. The cost of this indirect tax is ultimately passed on to consumers particularly those in the low income segments.

GST @17 percent has a negative impact on GDP growth and curtailed domestic demand. Dropping sales tax to single digit will have a very positive impact on business sentiment and will trigger demand in the domestic market. The measure will also provide much needed relief to trade, industry and consumers.

The CNIC condition, which is elevated to Rs100, 000, should be removed as it is also not implemented across the board.

The FBR revenue targets must be made realistic, as this year FBR has set 3,900 Billion. RCCI demands a rational approach towards revenue collection, he said.

Apparently it seems the existing tax payer will be forced to pay more taxes, he cautioned.

President Saboor Malik further added that small units with the turnover up to Rs 10 million per year should be exempted from sales tax registration. At present this limit is Rs 2 million.

He said that RCCI also proposed that the rate of duties and taxes on import of raw materials for industry and commercial importers should be the same as small and cottage industry purchase these materials from local markets and importers.

Few sectors which are completely closed like banquet halls, hotels, restaurants, travel and tourism industry etc. are at zero earnings, these sectors are completely ignored in the Federal budget. Special incentives should be given to the concerned sectors, he demanded.






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