Section 111 (source of investment) of IT Ord: Business community seeks exemption for all sectors in budget

Business community has proposed Federal Board of Revenue (FBR) that the exemption from section 111 (source of investment) of the Income Tax Ordinance should be extended to all sectors of the economy in coming budget (2020-21).

A special video link session Federal Board of Revenue (FBR) on budget proposals for the year 2020-2021 was held at Rawalpindi Chamber of Commerce and Industry (RCCI).

Speaking via video link, Chamber President Saboor Malik suggested that urgent and special measures are required due to the Corona epidemic and lockdown. The chamber had earlier proposed that the sales tax rate be dropped to five per cent with immediate effect.

All kinds of tax audits, recoveries and collections should be deferred and harassment should not be taken place on the account of tax collection and recoveries. The FBR should put efforts and their focus must be on the tax structure. Maximum benefits should be given to tax payers. Revenue targets should be set at a minimum level in the budget.

The filers should be given credit on their income on the basis of average tax being paid on a monthly basis. Incentive and relief packages should be given to all sectors. No source of income should be sought for investment in any sector.

Better negotiations should be made with the IMF and other financial institutions and relief should be sought, foreign loans taken from the World Bank and friendly countries should be right off, he suggested.

Exemption of section 111 should be extended to all sectors. The benefit of reduction in prices of petroleum products in the international market should be passed on directly to the people.

The auto sector, travel, wedding halls, hotels, event management and tourism have been directly affected. More concessions should be announced for these sectors. The effects of the lockdown will be long-term, so special measures will have to be taken to tackle unemployment.

Local industry will have to be promoted and immediate measures are required to lift agro-based industries.

The RCCI president lauded FBR initiative for hosting video link session on budget proposals and added that the consultation would enhance confidence building between the FBR and the business community.

The meeting was attended by Group Leader Sohail Altaf, Senior Vice President Nasherwan Khalil Khan, Former President Malik Shahid Saleem, Former Senior Vice President Nasir Mirz and Executive Members Shahriz Malik and Shehzad Malik. Secretary Policy IR Reema Masood, Abdul Wahid Shar, Secretary Income Tax Budget, Muhammad Ali, Secretary Sales Tax Policy, Said Iqbal Secretary Income Tax, Ms Mahin Hassan, Secretary Sales Tax Policy and Syed Hassan Secretary R Policy participated.