Traders propose major changes in Finance Act

ISLAMABAD: Traders on Wednesday highlighted serious issues in the implementation of the key budgetary measures, enforced from July 1, 2022, including the concept of “deemed rental income” on immovable properties.

During a post-budget meeting with Finance Minister Miftah Ismail, the traders proposed major changes in the Finance Act 2022, to review a new concept of “deemed rental income” on immovable properties and a revision of the import ban list.

Ismail held a meeting with a delegation of businessmen led by Muhammad Shakeel Munir, President Islamabad Chamber of Commerce and Industry (ICCI) and Chaudhary Naeem Rauf, President Rawalpindi Chamber of Commerce and Industry (RCCI) at the Finance Division.

The FBR chairman, senior officers from the Finance Division and the FBR, and representatives of various business sectors attended the meeting.

The members of the business community extended thanks to the finance minister for meeting and apprised about multiple issues related to taxation in the federal budget 2022-23 on various sectors. They requested for resolving their issues and sought support of the government for bringing in efficiency in various sectors.

Ismail welcomed the businessmen and acknowledged the contribution of the business community in the growth of economic activity in the country. He further stressed that macroeconomic stability was the top priority of the present government and the present government was focusing on ensuring financial discipline through effective and business-friendly policies to achieve the economic growth level.

The finance minister further assured the delegation to address its issues on priority with regular communication and consultation with the business community.

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In conclusion, the finance minister expressed resolve of the present government to promote business activities and facilitate the business community to attain sustainable growth in the country.

The delegation was led by Rawalpindi Chamber of Commerce and Industry (RCCI) President Nadeem Rauf included group leader Sohail Altaf, former presidents Dr Hassan Saroush, Asad Mashhadi, Raja Amir Iqbal, Zahid Latif Khan and chairman of the RCCI tax affairs committee Faraz Fazal. Chairman FBR Asim Ahmed was also present on the occasion.

Issues related to importers and exporters, revision of list of import banned items, deemed rental income, poultry feed, furniture, tax matters, sales tax and duties were discussed during the meeting.

Talking to the Rawalpindi Chamber delegation, the federal minister said that the first priority of the government is to facilitate the business community. The matter will be taken up in the Cabinet regarding a one-time exemption on bill of lading (BL) items that are banned from import. He assured the delegation that the issue would be resolved in consultation with the stakeholders to address their concerns over deemed rental income.

Chamber President Rauf told the federal minister that the construction sector has been affected by the imposition of tax on deemed rental income in the budget. He said that industrial zones should be set up in Rawalpindi, special economic zones should be set up in Rawalpindi under CPEC. The list of items banned for import should be revised as it is likely to increase smuggling, he added.

He said that it was a welcome step that the chairman FBR was also present in the meeting who listened to our demands in detail on tax matters and took suggestions. To overcome the current economic challenges, it is necessary to provide relief to the business community to increase business activities. He further suggested that government must introduce sector-based incentive packages, and formulate policy in consultation with stakeholders.

Copyright Business Recorder, 2022