RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) President Mohammad Nasir Mirza has expressed deep concern over the government’s proposed money bill to abolish income tax exemption and termed it a mini budget. He said that as per media reports a summary in this regard has been approved by the federal cabinet where about 77 proposals are under consideration for withdrawal of tax exemption available under the Income Tax Ordinance 2001.
These include company/firm listings in the stock market, non-profit organizations, discounts/tax credits on setting up refineries, special economic zones (SEZs) being setup under the China-Pakistan Economic Corridor and the Independent Power Producers (IPPs), plant and machinery installation of new machinery, real estate investment trust, film industry, sports board and IT Export services.
In a statement, the Chamber president expressed strong reservations over the proposed bill, saying the country’s economy was going through difficult challenges due to the COVID-19 epidemic. The COVID has hit the business community hardest. At such a time, introduction of a tax-exempt money bill has ringed alarm bells among the business community. He said that the Chamber has always demanded that stakeholders be consulted in economic policy making. The IMF’s terms should be seen in the context of the ground realities.
He said that actually tax exemption has led to an increase in investment in many sectors in Pakistan especially in IT, Real Estate Investment Trust and CPEC Industrial Zones and the government has received many times more tax. Abolishing tax exemptions will stop investment in these sectors in the country as a result of which the FBR’s annual tax targets will not be met, he added.
Governments around the world have announced special incentives, tax breaks and financial support packages in the wake of the Corona epidemic.
He said that due to the Corona epidemic, business activities were slowing down and a full recovery would take a long time.
