news desk
\nRawalpindi
\nThe 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 2019-20, stating that these proposals would help increase economic activity, incentives for manufacturing and SMEs and widen the tax net thereby increasing the government revenue.
\nThe RCCI President Malik Shahid Saleem said in a statement that the proposals had been categorized into income tax, sales tax and custom duties with special focus on the documentation of the economy.
\nKey proposals in the category of income tax relate to broadening the tax base, it was suggested that discretionary powers of inland department should be restricted as it lead to abuse of authority and harassment.
\nGovernment should take additional measures to incentivize exports and taking other measures to ease the cost of doing business and improving the overall regulatory regime to facilitate exporters.
\nExemptions from any tax and audit for first 02 \u2013 03 years. Active Tax Payers List (ATL) to be upgraded on weekly or monthly basis. National Tax Number (NTN) or Chamber membership should be made compulsory for starting new businesses or obtaining commercial electricity \/ gas meters. Tax Filers be given privileges in hospitals, schools, airports, banks etc and Tax Filers be given power of attesting authority. Reduction in the rate of income tax has also been sought.
\nTax holidays may be introduced for new business ventures for at least first five years from the date of incorporation for those taxpayers who incorporate their businesses as LLP\/ Companies.
\nIn case of Small Companies, the rate of income tax may be reduced from current 25% to 20%. Small Companies should be exempted from being withholding agent to deduct taxes and file statements.
\nThe RD imposed by the Ministry of Finance (Revenue Division), through its Notification SRO-1065(I)2018 dated 16th October 2018, may be removed with immediate effect however, percentage of sales tax may be reduced to 10% non adjustable, non-returnable. However, 17% sales tax on sales value may be abolished as it leads to miscalculations and malafied working.
\nInvestigation regarding revenue sources should be abolished in:
\n\u2022 SME Trading Companies uptill 10 Million
\n\u2022 SME Manufacturing Companies 25 Million.
\nA single online integrated Sales Tax Returns filing procedure may be introduced for Federal and Provincial Sales Tax declaration instead of current separate filing requirements for federal and each province.
\nThe limit for retailers \/ AOP\u2019s should be increased up to Rs 50 Million Turnover Tax.
\nAllowing income tax refund within 01 month automatically to salaried individual\u2019s days, auto credit and Invoking Section 140 may be stopped till decision of first appeal & status quo.
\nCapital Gain Tax Exemption on Sale of Property to REITs should be available to all types of REIT schemes as it was available till June 2015. It is therefore, suggested that exemption available to REIT Scheme as per Clause 99A of Second Schedule of Part I of ITO, 2001 up to June 2015 may be extended at least for another period of five (5) years.
\nCorporate tax to be brought down to 25%, currently it stands at 31 %. Pakistan\u2019s corporate tax rate is third highest in world.
\nRCCI President suggested that there is a need to address the key issue of massive under-invoicing \/ dumping of imported product. Import value is fixed in consultation with industry.
\nRCCI President said that we have been urging the government to curb smuggling as it is denting the economy badly. In Pakistan the ratio of goods smuggling is high as compared to its neighbouring countries. <\/p>\n","protected":false},"excerpt":{"rendered":"
news desk 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 2019-20, stating that these proposals would help increase economic activity, incentives for manufacturing and SMEs and widen the tax net thereby increasing the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-57622","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n