We are enclosing herewith a copy of Finance Bill 2020 (Budget 2020-21) for your kind information and perusal, with the request to kindly send us your comments/feedback on the federal budget. ICCI shall send the recommendations to the government for making desired amendments in budget in order to provide needed relief to the business community for accelerating trade, industrial and exports activities. The lockdown due to Covid-19 has caused devastating impact on the businesses across the country. Especially, the SMEs sector has been hit hard due to closure of businesses. This situation has created great liquidity problems for businesses putting their survival and sustainability in danger. The following proposals were sent to the government for consideration and for providing relief to businesses in budget: -
- Gradual reduction in corporate tax to bring it down to 25%.
- Waiving off CNIC condition for 1 year or enhancing its transaction limit from Rs.50,000 to Rs.200,000/-.
- Reducing 1.5% turnover tax on steel industry to 0.5%-0.25%.
- Allowing 100% adjustment of input tax against output tax under Sec-8B of Sales Tax Act.
- Deferring rents of shops of traders for 3-6 months.
- Announcing relief measures for SMEs and small traders.
- Deferring receipt of loans with markup and utility bills from businesses for 3-6 months to address their cash flow issues.
- Further reducing interest rates to 4% and bringing down sales tax to single digit level.
- Waiving off advance tax on businesses due to Covid-19 issue and reducing tax on rental income.
- Accelerating process of refunds payment or allowing adjustment of payable taxes against accumulated refunds of income tax, sales tax and customs duty that would help in clearance of stuck up imported raw material at ports and avoid any disturbance in supply chain.
- Restoring zero-rated regime for exporters to boost exports.
- Deferring all audit cases of taxpayers for one year in light of difficulties of businesses due to Covid- 19 and introducing fixed tax regime for traders.
- Withdrawing the decision of imposing luxury tax in Islamabad.
We look forward to your early response.