ICCI calls for slashing 35 percent tax on rental income to 15 percent - Press Release issued by Islamabad Chamber of Commerce and Industry.

Islamabad -- June 24, 2020 (PPI-OT)

Following is the text of press release issued by Islamabad Chamber of Commerce and Industry (ICCI)

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Tahir Abbasi, Senior Vice President, Islamabad Chamber of Commerce and Industry said that before the budget, the business community has been demanding of the government to reduce the maximum tax on rental income from 35 percent to 15 percent as it has not only increased the hardships of the business community but also encouraged tax evasion, but the government has not paid any heed to this issue in budget. He strongly demanded that during the review of the budget, the maximum rate of tax on rental income should be reduced from 35% to 15%, which would alleviate the hardships of the business community, boost business activities and improve the tax revenue of the government as well.

Tahir Abbasi said that the government has increased the withholding tax on the engineering services industry from 3% to 8% in the budget, which would affect business activities of this industry and give rise to unemployment. He urged that the government should withdraw the hike in WHT on the engineering services industry to save this sector from further troubles.

He said that the engineering services industry was an important source of job creation in the country while this industry was also playing a positive role in developing skilled and professional talent to go abroad for work and increase remittances for Pakistan. However, more than 166% hike in WHT on this industry in...