RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI)has shown strong reservations on the federal and provincial budgets 2021-22. Addressing a post-budget meeting at Chamber House President Mohammad Nasir Mirza said that Section 203A authorizes the tax officer to arrest a tax-payer. This will increase harassment, bribery and blackmail and demanded for immediate withdrawal of the Section 203 A. He said that in general both the budgets reflect balance and growth driven. However, there were certain measures which have been proposed in the budget that had sent a negative message among the business community.
The reduction in customs duty, withholding tax, capital gains tax and regulatory duty is welcome. The duty rate on poultry feed and raw materials has been reduced but on the other hand the sales tax rate has been increased from 10% to 17%. The government has increased the income tax rate on the turnover of flour mills from 0.25pc to 1.25pc this should be withdrawn immediately.
Group leader and former president Sohail Altaf said that the business community has been most affected due to COVID-19. Only by ending departmental intervention the commercial activities in the country be boosted. Section 203 (A) of the Income Tax Ordinance also contradicts the government’s own policy which states that there should be minimal interference between the taxpayers and the tax authority. The Ministry of Finance should consult with stakeholders regarding the installation of a point-of-sale system. Measures such as a fine of Rs 1 million and sealing of the shop should be withdrawn, he added. He further added that the government should take incentives and attractive measures to increase the tax net. You can’t collect taxes by threatening tax-payers, he added.
Make the POS system attractive. The sales tax rate should be brought up to single digit. He deplored that there was no allocation for the game changer project Ring Road and feared that it might be withdrawn from ADP.
Convener Tax Committee Shehzad Malik briefed the meeting on federal and provincial budgets in detail. He said that e-hearing is being introduced. Section 122 has been withdrawn. However, we demand that the issuance of manual notices be ensured. Many tax payers are still unaware of e-notices.
Former presidents Jalil Ahmad Malik, Kashif Shabbir, Asad Mashhadi, Raja Amir Iqbal, Senior Vice President Osman Ashraf, Vice President Shahraiz A Malik, representatives of Anjuman-e-Tajiran Sheikh Hafeez, Tahir Taj Bhatti, members of the executive committee and chamber members were also present on the occasion.
