Ijaz Abbasi urges govt to reconsider tax on rental income

ISLAMABAD: President Islamabad Chamber of Commerce & Industry (ICCI), Muhammad Ijaz Abbasi has urged the government to reconsider tax on the rental income as termed it unjustified.

The President ICCI in a statement stated that a large segment of people have shown great concern on it and demanded the government to bring the rates down.

He suggested that tax on rental income may be charged 2.5%, 5% and 7.5% on the proposed slabs, instead of 5%, 10% and 15%.

President ICCI said that in the budget, policy of milking of same cow has been adopted, whereas initiative should be taken to broaden the tax base, instead of putting further burden on the existing tax payers.

He said that FBR should take initiatives to attract the non-tax payers to increase tax base and revenues.

Muhammad Ijaz Abbasi stated that Federal Excise Duty on the cement is up by Rs.150/tone, which will also increase the price of cement and eventually the cost of construction. He said that cost of different types of materials for the construction is already on the rise and increase in the Federal Excise Duty will further amplify the cost of construction.

The business community had proposed to bring down the General Sales Tax to 10% for reducing the prices of products for the consumers, whereas rise of GST to 16%, will put the burden on the consumers and the business community.

He said that government should reconsider the increase in GST and should bring it down.

Muhammad Ijaz Abbasi said that prices of gas and electricity are being enhanced substantially, which will considerably up the cost of products and Pakistan’s exportable items will face more tough competition in the international market. He said that already it has become difficult to meet the export targets, thus further massive increase in the prices of electricity and gas will make our products uncompetitive.

He stressed that government should not allow massive increase because it will create more inflation which gone very high.

Muhammad Ijaz Abbasi proposed that 35% LC margin should be reduced to 10 percent for non-essential items and 0 percent for industrial raw material.

He said that State Bank of Pakistan should review the decision for reducing the LC margin rates for the growth of business activities.