RCCI Expresses Concerns Over Proposed ‘Rs. 360 Billion Mini-Budget’

The Rawalpindi Chamber of Commerce and Industry (RCCI) has expressed deep concerns over the government proposed money bill to abolish income tax exemptions and impose new taxes, terming it as a ‘mini budget’.

In a statement, President RCCI Nadeem Rauf said the government, in order to meet the conditions of the International Monetary Fund (IMF), was preparing Rs. 360 billion mini-budget by imposing 17% sales tax on about 140 essential consumable and industrial goods, in addition to increasing the income tax rates on phone calls by 50%.

“The mini-budget would further increase the cost of doing business, give rise to inflation for the common man, badly affect the business growth, and damage the confidence of potential investors,” he said, adding that the prices of goods, including milk, cereals, bakery items, meat, chicken, gold, bicycles, cars including electric cars, and mobile phones would rise. He expressed fear that this would trigger another wave of inflation in the country.

He said the major chunk of the revenue, around Rs. 300 billion would be generated by slapping 17% tax on the import stage on nearly 80 items. He maintained that most of the goods were essential items and did not fall in the category of luxury goods. This is contradicting the government’s policy on renewable energy and is also contrary to the global direction, he underlined.

It is very unfortunate that the government is imposing 17% GST on raw materials of the medicines, he regretted. He said this would bring more misery to the poor and might create a hue and cry in society. He said a 17% sales tax was being imposed on the import of machinery for renewable energy including solar, wind and nuclear power generation.