RCCI submits budget proposals with FBR, urge to lower taxes.

RAWALPINDI -- The Rawalpindi Chamber of Commerce and Industry (RCCI) has submitted to the Federal Board of Revenue (FBR) a set of proposals for consideration and incorporation in the federal budget for 2022-23, stating that these proposals would help increase economic activity and widen the tax net thereby increasing the government revenue.

RCCI President Nadeem Rauf said that the proposals had been categorised into income tax, sales tax, Excess of FBR Powers and import and export with special focus on the documentation of the economy.

Currently the rate of sales tax is 17% which is higher in the subcontinent, the rate should be reduced to single digit, he added.

He strongly urged government to revert back the taxes imposed in the mini budget 2022 earlier in January this year by slapping 17% tax at the import stage on nearly 80 items. The majority of these items are essential goods and do not fall in the category of luxury goods.

He further added that it is very unfortunate that the Government has imposed 17% GST on raw materials of the medicines; this has added more misery among the poor masses.

Nadeem Rauf said that a 17% sales tax has been imposed on the import of machinery for renewable energy including solar, wind and nuclear power generation. This is contradicting the Government's policy on renewable energy as well as contrary to the global direction.

We have only around 3 million people who are filing their income tax returns, out of which one million filed as zero. It is proposed that all the persons having industrial or commercial electricity or gas connections should be brought into the tax net.

This is the era of technology, it is recommended to consolidate the entire Provincial and the Federal sales tax returns, he added.

Point of Sales for retailers:

The limitation of 1000 sq.ft is unjustified, this need consideration.

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