Rawalpindi: (Business Reporter)Saboor Malik, President, Rawalpindi Chamber of Commerce and Industry (RCCI), while responding to the budget for fiscal 2020-21, said that the budget falls below expectations for the business community. However, we welcomed that no new tax has been imposed. The revenue target in the budget has been set to 4963 billion. It is impractical and does not reflect the ground realities. We demand that the government must review its revenue targets.
The condition of CNIC which was earlier fifty thousand is now proposed to be extended to one hundred thousand. This was our long standing demand and also agenda point of RCCI 12th All Pakistan Chambers Presidents Conference 2020. He said that the chamber had proposed to reduce the sales tax from 17 to 5 percent. We were disappointed that it was not accepted. It is proposed to enable alternative dispute resolution, ADRC. This was a long standing demand of the Chamber which has been met. At the same time, Rs 650 billion has been earmarked for PSDP, which is less. It should be increased. Last year, Rs 675 billion was allocated. He said the chamber had proposed to abolish the tax for POS point of sales, but the rate has been reduced from 14 per cent to 12 per cent.
The scheme announced for the construction sector, which was due to expire in December 2020, was demanded by the chamber to be extended. It has been extended to June 2021. This is welcome decision. The demand to update and fully digitize the FBR system was also met.
The rate of advance tax on raw materials has been reduced to 2%. The Chamber had demanded at the 12th All Pakistan Chamber Presidents Conference that the rate should be reduced from 5.5 per cent to 3 per cent. Tax refunds have been issued to address the shortage of capital. This is also a good move.