RCCI expresses concerns over proposed ‘360 billion mini-budget’
RAWALPINDI ( Web News )
The Rawalpindi Chamber of Commerce and Industry (RCCI) has expressed deep concerns over the government’s proposed money bill to abolish income tax exemptions and impose new taxes, terming it a ‘mini budget’.
RCCI President Nadeem Rauf in a statement said that the government, in order to meet the conditions of the International Monetary Fund (IMF), is preparing a RS 360 billion mini-budget by imposing 17% sales tax on about 140 essential consumable and industrial goods, in addition to increasing the income tax rates on phone calls by 50%.
Terming it a negative move, he said the mini-budget would further increase the cost of doing business, give rise to inflation for the common man, badly affect the business growth and damage the confidence of potential investors. The prices of goods, including milk, cereals, bakery items, meat, chicken, gold, bicycles, cars including electric cars, mobile phones will rise, unleashing another wave of inflation in the country, he added.
He said that the major chunk of the revenue, around Rs.300 billion will be generated 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 is imposing 17% GST on raw materials of the medicines, this will add more misery and might create hue and cry in the society.
Nadeem Rauf said that a 17% sales tax is being 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.