OICCI criticises staggering super tax

The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed disappointed on staggering of super tax which is hurting its member organisations. "The budget proposals announced by the Finance Minister, overall, appear to be delicately crafted under a prevailing uncertain environment. From the overseas investors' perspective, we were disappointed with the staggering of 3-4% super tax which should have been withdrawn in totality," said Abdul Aleem Secretary General OICCI in a statement.
He said, similarly reduction in corporate tax rate in installment by 1% for next five years is positive but below expectation and regional average. Moreover, the minimum tax rate and alternate tax were not revised. However, the withdrawal of tax on bonus shares, lowering of tax rate and limit on undistributed profit are appreciated as is the extension of tax incentive on BMR investment upto 2021 and 20 year tax holiday on deep conversion oil refinery.
Moreover, the data mining promised by Minister of Finance to broaden the tax base has been long overdue and will be watched by all the stakeholders intensely. The reduction in the tax rate from 0.6% to 0.4% on cash withdrawal by Non filers is disappointing as is the increase in sales tax rate from 2 to 3% on sales to non registered person is regressive. The Finance Minister also disappointed many by not giving a way forward in settling the long pending tax refunds of the corporate sector like members of OICCI whose pending tax refund have jumped to Rs. 58 Billion .
" The decision to limit comprehensive tax audit to one in three years and empowering ADRC and its decision, if properly implemented, is a step in the right direction. Overall, we have failed to find in this budget, necessary out of box and major new initiatives urgently needed to rejuvenate large FDI which is waiting on the sideline to enter in the country to meet growing economic need of the country. If one has to rate this budget proposals on a scale of ten, then we may give a score of 6 , which is not bad under the circumstances," he concluded.