KCCI President presents budget proposals for 2009-10
Mr. Anjum Nisar, President Karachi Chamber of Commerce & Industry,has presented the proposals to the Federal Government for the forthcoming budget 2009-2010.The proposals were compiled by a team of experts under the supervision of Mr. Qamar Usman, Chairman Taxation Sub-Committee-KCCI.
The summary of the budget proposals by KCCI are as follows:-
1)KCCI proposed that exemption limit for man, be raised from Rs.180,000/- to Rs.300,000/- and for women from Rs.250,000/- to Rs.400,000/-. Certain percentage of educational expenses be deducted on straight line basis against total income.
2)KCCI proposed to bring into tax-net every individual having income of over Rs.300,000/-. KCCI proposed that for this Govt. should approach those sectors of the society which have not been brought into tax net specially services sector which is 51% and agriculture sector which is 21% and all other sectors where individuals having income to this level and are not paying the taxes.
3)KCCI PROPOSED THAT MAXIMUM CORPORATE TAX RATE BE REDUCED TO 25% FOR MANUFACTURING AND 30% FOR NON-MANUFACTURING IN ORDER TO REMAIN INTERNATIONALLY COMPETITIVE IN ATTRACTING FOREIGN INVESTMENT.
4)KCCI proposed to establish an “Endowment Fund” from 40 billion available in the Workers Welfare Fund (WWF) and its profit should be utilized for the workers' welfare and collection from the industries should be freezed for a period of three (3) years. KCCI similarly proposed to transform EOBI into “Endowment Fund” as well.
5)“TAX PAYER CARD” BE INTRODUCED TO ALL TAX PAYERS WHO HAVE FILED AND COMPLETED TAX RETURN FOR LAST 3 FISCAL YEARS AND A MECHANISM MAY BE ESTABLISHED TO MONITOR THESE TAXPAYERS ON ANNUAL BASIS TO FACILITATE THE PROCESS, WITH CLEAR BENEFITS SUCH AS:
i)50% DISCOUNT ON GOVERNMENT FEES LIKE PASSPORT FEE, NIC FEE, DRIVING LICENSE FEE ETC.
ii)WAIVER ON LOAN PROCESSING FEE AND ANY OTHER ONE TIME CHARGES TAKEN BY BANKS FOR LOAN/FINANCE PROCESSING.
iii)REDUCED MARKUP RATES WHICH CAN BE MANAGED IF LOAN TAKEN FROM NBP.
6)The Compulsory condition to submit Wealth Statement along with Tax return, the minimum value be enhanced from Rs.500,000/- to Rs. 1,500,00,000/-.
7)The turnover condition of Rs.250 million of small companies may be enhanced to Rs.500 million and Income Tax rate be specified to only one rate i.e. 20 percent.
8)EXPORT DEVELOPMENT SURCHARGE COLLECTED FROM EXPORTERS @ 0.25
BE ABOLISHED AS NO SIGNIFICANT EFFORTS HAVE BEEN MADE BY THE
GOVERNMENT OR TDAP FOR THE EXPORTERS OUT OF EXPORT DEVELOPMENT
FUND. Withholding tax being charged on export turnover @ 1.0% be brought down to 5%.
9)RESEARCH AND DEVELOPMENT SUPPORT FOR HIGH VALUE ADDED TEXTILES (TOWEL, APPAREL, BED WEAR) BE CONTINUED FOR NEXT THREE YEARS AS PAKISTANI EXPORTERS ARE GENERALLY FACING TOUGH COMPETITIVE IN GLOBAL MARKET AND PARTICULARLY IN EXPORT OF TEXTILE PRODUCTS DUE TO EVER-INCREASING COST OF PRODUCTION IN THECOUNTRY SUCH AS INCREASE IN GAS, POWER TARIFF AND OTHER INPUTS.
SALES TAX & FEDERAL EXCISE DUTIES
1) Distributors & AOPS be exempted for .........
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Karachi Chamber of Commerce & Industry