Govt urged to reconsider proposal of luxury tax.

ISLAMABAD -- The business community at Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to reconsider the proposal of imposition of luxury tax on the citizens of Islamabad in the best interest of citizens and withdraw this proposal forthwith.

They resented the proposal for levying a luxury tax in Islamabad Capital Territory and has urged the government to withdraw it as its imposition only in Islamabad would be a discriminatory treatment with the citizens of the federal capital.

Muhammad Ahmad Waheed, President Islamabad Chamber of Commerce and Industry has said that the government had claimed of presenting a tax free budget as no new tax was introduced in the Federal Budget 2020-21. However, contrary to its claim, the government has proposed a luxury tax for ICT in the Finance Bill 2020, which was totally unjustified.

He said that due to the Covid-19 pandemic, citizens of Islamabad were already facing great problems and in these circumstances, imposing luxury tax on them would add to their problems. He said that the citizens of Islamabad were already paying 6 types of taxes, therefore, subjecting them to a luxury tax would be a great injustice to them.

ICCI President said that MCI has already made 300 percent increase in property tax in Islamabad and in this situation, imposition of luxury tax would be a double taxation on them that was against the basic rights of citizens.

He said that other major cities of the country including Karachi and Lahore have...