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Category: Budget

This is parent category of budget presented by Pakistan government. Here you will find year-wise federal and provincial budgets.

  • Advance ruling in Customs laws introduced

    Advance ruling in Customs laws introduced

    ISLAMABAD: The government has introduced mechanism of advance ruling to facilitate importers and investors to ensure transparency in clearance process.

    Section 212B has been inserted to the Customs Act, 1969 through Finance Bill, 2020 to introduce advance ruling.

    Section 212B: Advance Ruling.

    (1) An applicant desirous of advance ruling shall make an application in such form and in such manner as may be prescribed under the rules, stating any of the questions as contained in sub-section (2), on which the advance ruling is sought.

    (2) The question on which advance ruling is sought shall be in respect of-

    (i) classification of goods under First Schedule to this Act;

    (ii)determination of origin of the goods under the rules of origin notified for bilateral and multilateral agreements;

    (iii)applicability of notifications issued in respect of duties under this Act or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act; or

    (iv)any other matter as the Board may specify by notification in the official Gazette.

    (3)The advance ruling issued under sub-section (1) shall be binding on the applicant.

    (4)The advance ruling issued under sub-section (1) shall be binding on the customs collectorates for the period specified by the Board in the rules, unless there is a change in law or facts or circumstances on the basis of which the advance ruling was pronounced.

  • Customs duty exempted on import of industrial raw material

    Customs duty exempted on import of industrial raw material

    ISLAMABAD: Federal Minister for Industries and Production Hammad Azhar announced to exempt customs duties on import of industrial raw material.

    While presenting the Budget 2020/2021, the minister highlighted the key points of changes brought to Customs Act, 1990 through Finance Bill, 2020.

    He said that the government had initiated customs tariff rationalization during the last year and allowed exemptions from customs duties on 1600 tariff lines of raw material.

    In order to reduce cost of production it is suggested that all raw material should be exempted from customs duty from next fiscal year.

    These exemptions has been proposed for import of raw material for manufacturing of chemicals, leather, textile, rubber, fertilizers etc.

    These tariff lines include 20,000 items which are around 20 percent of the total imports.

    Furthermore, he said that customs duty has been reduced on 200 tariff lines on import of raw material and secondary products which, included bleaching, rubber and raw material for home consumption.

    Hammad Azhar on the floor of the National Assembly said that regulatory duty has been reduced to 6 percent from existing 12.5 percent on import of hot rolled coils for encouraging domestic engineering sector.

    He said that the regulatory duty has been reduced on various products in order to discourage smuggling. The minister said that in the past regulatory duty was imposed which resulted in reduction of import of such goods. However, it is observed that some products were imported by Afghanistan and then entered into Pakistani markets.

    Therefore, it is suggested the reduction of regulatory duty on import of cloths, sanitary ware, electrodes, blankets, pad locks etc.

    The government has also abolished duty and taxes on import of diagnostic kits for coronavirus and cancer to provide relief to the masses. Further, duty and taxes have also been abolished on import of special food supplements and dietetic food.

  • Budget salient features related to Income Tax

    Budget salient features related to Income Tax

    ISLAMABAD: Federal Board of Revenue (FBR) issued budget salient feature related to income tax presented through Finance Bill, 2020.

    INCOME TAX

    RELIEF MEASURES

    • Deletion of Withholding Taxes

    To augment efforts towards simplification of the withholding tax regime, the following withholding tax provisions are being deleted:

    Section 236R: Collection of advance tax on education related expenses remitted abroad

    Section 235B: Tax on steel melters and composite units

    Section 156B: Withdrawal of balance under pension fund

    Section 148A: Tax on local purchase of cooking oil or vegetable ghee by certain persons

    Section 236D: Advance tax on functions and gatherings

    Section 236F: Advance tax on cable operators and other electronic media

    Section 236J: Advance tax on dealers, commission agents and arhatis etc.

    Section 236U: Advance tax on insurance premium

    Section 236X: Advance tax on tobacco

    This measure would reduce the cost of the compliance of taxpayers, enhance the control of FBR over the withholding tax regime and would be pivotal in promoting ease of doing business.

    • Enhancement of Threshold for Becoming Prescribed Person for Withholding of Tax on Supplies, Services and Contracts from fifty to hundred million rupees and a similar threshold of hundred million rupees is being prescribed for a sales tax registered person to become a withholding agent.

    • Reduction in Holding Period and Tax Rates for Capital Gain on Immoveable Property to incentivize and propel economic activity in the real estate sector, the bifurcation of plots and constructed property for determining holding period of capital gains is being done away with i.e. the holding period for taxation of capital gains on disposal of immovable property is being restricted to 4 years. In addition, rates are also being reduced on capital gains emanating from disposal of immoveable property.

    • Increase in Threshold of Section 21(l) per transaction delineated under section 21(l) is being increased from Rs. 10,000/- to Rs. 25,000/-. Similarly, the threshold of payments under a single from Rs.50,000/- to Rs.250,000/-.

    • Increase in Threshold of Section 21(m) from Rs. 15,000/- per month to Rs.25,000/- per month.

    • Enabling Adjustability of Property Expenses for All Individuals/AOPs

    • Exempting Withholding Tax on Cash Withdrawal to the extent of Foreign Remittances

    • Promoting Investment in Government Debt Instruments through a foreign bank account, a non-resident rupee account repatriable or a foreign currency account.

    • Issuance of Centralized Income Tax Refunds

    • Hajj Operators to be Exempted from Withholding Tax on Payments to Non-Residents

    • Explanation for excluding Vehicles Up to 200cc from the Ambit of Advance Tax

    • Advance Tax on Auction of Immovable Property to be Collected in Installments

    • Prompt Issuance of Exemption Certificates to Public Listed Companies within 15 days

    • Collection of Advance Tax by Educational Institutions not to Apply to Persons on the ATL

    • Rationalizing Tax on Imports by shifting from person-specific rates to goods specific rates cascaded according to the type of goods, with tax @1% for capital goods, 2% for raw materials and 5.5% for finished goods irrespective of status of the importer. However, the prevailing concessional rates on certain items such as remeltable scrap of iron and steel, potassic and urea fertilizers, LNG, Gold, Cotton, goods that were importable by manufacturers under the rescinded SRO 1125(I)/2011 dated 31.12.2011, mobile phones etc. are being maintained.

    • Agreed Assessment through arbitration by Assessment Oversight Committee

    • Strengthening Alternate Dispute Resolution Mechanism

    • Taxation Of Resident Shipping Companies as per latest marine policy

    PROCEDURAL MEASURES

    • Taxpayer’s Profile Automated Adjusted Assessment to rectify computational errors and wrongly claimed credits

    • Real-Time Access to Databases of Certain Organizations

    • Audit on the Basis of Benchmark Ratios

    • Enabling E-Audit

    • Strengthening Compliance Regime of Non-Profit / Welfare Organizations

    • Electricity Expense to be Treated as an Inadmissible Business Deduction subject to non-disclosure of name of actual user from 01.01.2021

    • Disallowance of Business Expenditure Proportionate to Sales Made to Sales Tax Unregistered Persons

    • Rationalizing Depreciation Deduction based on the Half Year Rule

    • Limiting Interest Deductibility to Foreign Affiliates

    TECHNICAL MEASURES

    • Rationalization of Cost of Transport Vehicle for Claiming Deduction on Account of Lease Rentals

    • Filing of Withholding Statements under section 165 on Quarterly Basis

    • Incentivizing and Promoting the Construction Industry

    • Tax Exemptions and Concessions for the Gwadar Port and the Gwadar Free Zone

    • Incorporation of Relief measures provided through SROs during the COVID pandemic.

  • Budget salient features related to Sales Tax, FED

    Budget salient features related to Sales Tax, FED

    ISLAMABAD: Federal Board of Revenue (FBR) issued budget salient feature related to sales tax and federal excise duty (FED) presented through Finance Bill, 2020.

    RELIEF MEASURES

    1. The minimum threshold of supplies by retailers for obtaining CNIC of the buyers is proposed to be increased from Rs 50,000 to 100,000;
    2. In wake of COVID-19, the Federal Government granted exemption to health related items and equipment through SRO 237(I)/2020 dated 20-3-2020 which is going to expire on 19-6-2020. In the present circumstances vis-à-vis COVID-19, the said period is being extended for another three months starting from the 20th June 2020.
    3. Exemption allowed on import of dietetic foods intended for special medical purposes for the children suffering from Inherited Metabolic Syndrome;

    MEASURES FOR REMOVAL OF ANOMALIES

    3(a) In order to encourage documentation, it has been decided to provide relief to organized retail sector which is integrated online with FBR through Point of Sale system. Their existing sales tax rate is proposed to be reduced from 14 percent to 12 percent

    STREAMLINING MEASURES

    1. Concept of conducting audit proceedings through electronic means introduced;
    2. Ninth Schedule is proposed to be amended in line with Mobile Manufacturing Policy approved by the ECC of the Cabinet;
    3. Insertion of the Tax Laws Amendment Ordinance 2019, relating to tax concessions and exemptions to Gawadar Port and Gawadar Free Zone, in the Finance Bill 2020;
    4. To strengthen the Alternate Dispute Resolution process and to make it more taxpayer-friendly, it is proposed that the taxpayer is allowed to withdraw his case from any court of law or any appellate authority after decision of ADRC. Furthermore, the decision of ADRC, once it is conveyed by the taxpayer to the tax authorities, is binding upon the tax authorities;
    5. The scope of section 73 is proposed to be widened to cover all registered persons supplying taxable goods;
    6. Board is empowered to fix minimum production on the basis of single or more inputs and for fixation of wastage;
    7. Real-time access to information and databases to the Board by various authorities such as NADRA, FIA, provincial excise & taxation departments etc.

    SALIENT FEATURES

    FEDERAL EXCISE DUTY

    The proposed budgetary measures pertaining to Federal Excise Duty (FED) for FY 2020-21 are:

    HEALTH RELATED MEASURES

    1. Increase in the rate of FED on cigars, cheroots , and cigarillos and cigarettes from 65 percent to 100 percent of retail price; increase in the rate of FED on filter rods from Rs 0.75 to Rs 1 per filter rod;
    2. Levy of FED on e-liquids of electric cigarettes @ Rs 10 per ml.
    3. Levy of FED on caffeinated energy drinks @ 25 percent;

    MEASURES FOR REMOVAL OF ANOMALIES

    1. Levy of FED @ 7.5 percent ad valorem in case of locally manufactured double cabin (4×4) pick-up vehicles and @ 25 percent in the case of imported ones.

    4(a) In the wake of worsening affect of COVID-19 and reduction in production of cement, it has been proposed to reduce FED on cement from Rs. 2 per kg to Rs. 1.75 per kg.

    STREAMLINING MEASURES

    1. Board is empowered to fix minimum production on the basis of single or more inputs and for fixation of wastage;
    2. The scope of seizure of non-duty paid goods is extended to all products subject to FED besides cigarettes and beverages;
    3. Real-time access to information and databases to the Board by various authorities such as NADRA, FIA, provincial excise & taxation departments etc.
  • Budget salient features related to customs duty

    Budget salient features related to customs duty

    ISLAMABAD: Federal Board of Revenue (FBR) issued budget salient feature related to Customs duty presented through Finance Bill, 2020.

    Industrial Relief Measures

    1. Exemption of additional custom duties on those tariff lines which are now @ 0 percent customs duty in tariff.
    2. Reduction of custom duty on 40 raw materials of various industries.
    3. Tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11 percent to 3 percent and 0 percent.
    4. Allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house printing facility.
    5. Reduction in regulatory duty from 12.5 percent and 17.5 percent to 6 percent and 11 percent, respectively on Hot Rolled Coils (HRC) of Iron and steel falling under PCT codes 7208 and 7225& 7226, respectively.
    6. On the request of various local industries, a number of their inputs/intermediary raw materials are being allowed concessional import under new serial number of the fifth schedule through IOCO quota determination.

    • Exemption of custom duties on import of raw materials by manufacturers of Butyl Acetate.

    • Exemption of custom duty on import of raw material by manufacturer of syringes and saline infusion sets.

    • Exemption of customs duties on import of raw material by manufacturers of buttons.

    • Reduction in custom duty on import of raw material by manufacturers of interlining/buckram.

    • Reduction of custom duty and exemption of additional custom duty and regulatory duty on import of raw materials by manufacturers of Wire rod

    • Exemption of custom duties and regulatory duty on import of machinery, equipment and other project related items for setting up of internet cable landing stations.

    • Exemption of custom duties on import of raw material by beverage can manufacturers.

    • Reduction in Custom duty and exemption from Additional custom duty on import of raw material by food packaging industry.

    Relief to Common Man

    1. Exemption from customs duties on import of 61 COVID19 related items, which was due to expire on 20th June has been extended due to the continuation of pandemic.
    2. Exemption from 2 percent ACD on import of edible oils and oil seeds under PM’s COVID19 Relief Package has been extended.
    3. Exemption of duties & taxes on import of Dietetic Foods for Children with inherited metabolic disorders.
    4. Exemption of all duties & taxes on import of Diagnostic Kits for Cancer and Corona Virus.
    5. Exemption of Customs duties on inputs of Ready to use Supplementary Foods (RUSF).
    6. Exemption of Customs duties on import of life saving drug Meglumine Antimonite for treatment of leishmaniasis.
    7. Extension up to 2023, in exemption of customs duties on imports for setting up new industries in erstwhile FATA area.

    Miscellaneous

    1. Reduction in regulatory duty on smuggling prone items to bring these items under legal imports
    2. Regulatory duty on several industrial inputs is also being reduced to decrease their cost of doing business
    3. Tariff protection for domestic industry by increasing/levy of regulatory duty on import of those items which are also locally manufactured
    4. Incentivizing soap manufacturing industry by reducing rate of Additional customs duty on Palm Stearin
    5. Enhancing scope of concessions available to Special Economic Zones.
  • Budget 2020/2021 at a glance

    Budget 2020/2021 at a glance

    ISLAMABAD: Hammad Azhar, Federal Minister for Industries and Production, on Friday presented budget 2020/2021 in National Assembly.

    Following is the budget at glance.

  • Budget 2020/2021 unveiled; no new tax; fiscal deficit estimated at 7pc

    Budget 2020/2021 unveiled; no new tax; fiscal deficit estimated at 7pc

    ISLAMABAD: Hammad Azhar, Federal Minister for Industries and Production, on Friday presented budget 2020/2021 on floor of house claiming to be a corona-hit budget with no new tax.

    The budget 2020/2021 has the following salient features:

    The total outlay of budget 2020/2021 is Rs7295 billion. The size is 11 percent lower than the size of budget estimates 2019/2020.

    The budget deficit has been estimated at Rs3,195 billion or 7 percent of the GDP for next fiscal year starting July 01, 2020.

    The net federal revenue has been estimated at Rs3,700 billion and total expenditures has been estimated at Rs7,136 billion. While it is estimated at the provinces would provide Rs242 billion surplus.

    The resources availability during next fiscal year has been estimated at Rs6,315 billion against Rs4,917 billion in the budget estimates of 2019/2020.

    The net revenue receipts for 2020/2021 have been estimated at Rs3,699 billion indicating an increase of 6.7 percent over the budget estimates of 2019/2020

    The provincial share in the federal taxes is estimated at Rs2,873.7 billion during the next fiscal year, which is 11.7 percent lower than the budget estimates for 2019/2020.

    The net capital receipts for 2020/2021have been estimated at Rs1,463 billion against the budget estimates of Rs831 billion in 2019/2020 reflecting an increase of 75.93 percent.

    The external receipts in 2020/2021 are estimated at Rs2,222.9 billion. This shows a decrease of 26.7 percent over the budget estimates for 2019/2020.

    The overall expenditure during 2020/2021 has been estimated at Rs7,295 billion, out of which the current expenditure is Rs6,345 billion.

    The develop expenditure outside PSDP has been estimated at Rs70 billion in the budget 2020/2021.

  • FBR bans use of information system till budget announcement

    FBR bans use of information system till budget announcement

    ISLAMABAD: Federal Board of Revenue (FBR) has put a ban on using information system from June 11, 2020 till announcement of budget 2020/2021, which is schedule for June 12, 2020.

    In an office order, the FBR said that due to budget announcement on June 12, 2020 restrictions on the access of servers/information system running at FBR Headquarters will come in force on June 11, 2020 from 8:00am till the end of budget speech.

    The FBR said that message and engagement features will be disabled and would not be accessible for the internal users of the FBR house.

    Users located in the FBR house premises would only be limited in routing/marking their correspondence in the Wings located within FBR House. However, external users such as RTOs/LTUs/Customs collectorates would be able to mark their correspondence to the internal users/Wings of the FBR.

    The FBR said that access to the system for correction of disposition list, online application of leave and other facilities will be completely banned for field formations.

    However, FBR’s e-Portal/server will remain accessible for authorized users outside FBR headquarter premises but no one within FBR HQ will be allowed to access FBR e-portal during budget exercise.

    STARR and Sales Tax systems/services will remain inaccessible for FBR HQ users, however, authorized users/outside FBR HQ premises will be allowed to access the system/servers.

    While the local network of PRAL HQ and FBR HQ will remain operational individually, transfer to any files/documents from FBR HQ network to PRA HQ network vice versa will be banned.

    Internet services in FBR HQ will remain unavailable in FBR HQ till conclusion of budget speech.

  • Budget 2020/2021 to focus on mitigating COVID-19 impact

    Budget 2020/2021 to focus on mitigating COVID-19 impact

    KARACHI: The government may focus supportive measures in the upcoming budget 2020/2021 in order to reduce the impact COVID-19, analysts said on Tuesday.

    Analysts at Arif Habib Limited highlighted the blueprint of the FY21 Budget whereby the key objective of the government is the revival and stabilization of the economy after being pinned down from the ongoing COVID-19 pandemic, via relief and supportive measures for the masses as well as the business community whilst constraining fiscal imbalances and meeting IMF’s revenue collection target.

    The government is scheduled to present budget 2020/2021 on June 12, 2020.

    They summarized some key expected measures below.

    1. Counter Coronavirus and ensure social security

    a. Allocation of PKR 1.0trn to fight the ongoing COVID-19 contagion with likely allocation to the following:

    I. Daily wagers cash allocation,

    II. Higher allocation to the Ehsaas program (for vulnerable families),

    III. Subsidized electricity for lifeline consumers,

    IV. Enhanced allocation to Utility Stores Corporation (USC),

    V. Higher allocation for health and food supplies,

    VI. Allocation to the National Disaster Management Authority (NDMA), and

    VII. Lowering down taxes on basic essential goods.

    b. SBP has already introduced several measures to contain the economic fallout post Corona pandemic such as:

    1) 525bps cut in interest rate,

    2) announcement of a relief package for households, industries and SMEs,

    3) Refinancing scheme to support employment and avert layoffs,

    4) Relaxation in credit requirement for exports and imports, and

    5) Facilitation of new investments via subsidized interest rates for BMR activities.

    c. Higher allocation of social expenditure under the federal PSDP.

    1. Revive economic growth, increase PSDP allocation along with incentives for industries

    The government has set GDP target for FY21 at 2.3 percent (FY20 estimated at -0.38 percent primarily due to the coronavirus pandemic)

    a. Allocation of PKR 630 billion under the Federal PSDP along with an additional PKR 200 billion under Public Private Partnership Authority (PPPA),

    b. Reduction of custom and excise duty by 3 percent on imports of machinery for agriculture and power sector,

    c. Removal of additional custom duty on different products to support local production and revive demand, and

    d. Removal of import duty on plant and machinery. Cascading duty structure on import of raw materials, intermediate goods and finished goods.

    Mobilize revenue measures to achieve the additional collection target for next year

    Tall revenue target of the FBR at PKR 5.1 trillion with additional requirement amounting to Rs 575 billion (discussed ahead) could be generated by means of:

    a. Amendment in income tax treatment of bad debts, which could generate Rs 100 billion in revenue from the banking sector,

    b. Imposition of luxury tax on luxury houses, farmhouses, mansions and bungalows,

    c. Imposition of import duty on 60 luxury imported items including cars, ceramics and others,

    d. Higher petroleum development levy during FY21, and

    e. Administrative and enforcement actions undertaken by FBR.

    1. Certain expenditures (ex-social spending) to remain uncompromised

    The government has set expenditure target for FY21 at Rs 10.4trn

    a. Defence expenditure likely to go up to Rs 1.4 trillion,

    b. Government is expected to allocate Rs 2.7 trillion for debt servicing in FY21,

    c. Federal PSDP allocation will be targeted at Rs 630 billion.

    1. Scope of documentation drive to be eased and relaxation expected to revive consumer spending

    a. Increase limit of providing CNIC conditions from Rs 50,000 to Rs 100,000,

    b. Withholding tax on remittances to be abolished,

    c. Reduction of 3 percent in further sales tax on supplies to undocumented individuals, and

    d. New sectors to be added to the tax net.

  • Hafeez Shaikh assures business community of presenting relief budget

    Hafeez Shaikh assures business community of presenting relief budget

    KARACHI: Dr. Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue, has said that the upcoming budget 2020/2021 will be a relief budget and most of the recommendations of business community will be adopted in the budgetary measures to be announced by the government on June 12, 2020.

    These assurance was given in a meeting held on Monday via video link between the KCCI’s team led by Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli with the advisor to deliberate on the proposals of KCCI for the Federal Budget 2020-21.

    On KCCI’s side, Siraj Teli was accompanied by President KCCI Agha Shahab Ahmed Khan and Former Senior Vice President Ibrahim Kasumbi.

    Officials of the Finance Ministry and Chairperson Federal Board of Revenue Ms. Nausheen Jawed were also present at the meeting which lasted for more than 40 minutes.

    In his opening remarks, President KCCI Agha Shahab Ahmed Khan stated that the budget for the year 2020-2021 is being prepared at a time when the country is facing an unprecedented crisis due to Covid-19 pandemic and every business and industry has been badly affected.

    In these extraordinary circumstances, people of Pakistan in general and the business community in particular are looking forward to a budget which provides substantial relief measures to rescue the economy from the brink of disaster.

    Chairman BMG Siraj Teli highlighted major macroeconomic issues during the meeting and elaborated on the measures which KCCI has recommended to rescue the trade and industry from devastating impact of a global economic meltdown caused by the spread of Covid-19 pandemic.

    He reiterated that today the Name of the Game is survival of trade and industry which should be on top priority in the budget rather than the revenues.

    Revenues can be recovered later only if the trade and industry survives hence the budget should focus on relief through these macroeconomic measures.

    He said that the domestic economy, which contributes 92 percent to the GDP and provides bulk of employment and revenues, has not received the much needed relief and financial assistance.

    He appreciated the reduction in prices of Petroleum products which was earlier proposed by KCCI and also the financial assistance given to the poor segment of population through Ehsaas program which provided much needed relief to the people.

    Siraj Teli proposed that an across the board reduction of 50 percent in the rates of all Taxes including Income Tax, Sales Tax, FED and Customs duties on capital goods and raw materials should be announced in the Budget for one year.

    Further, he suggested that rates of Electricity and Gas should also be reduced to half for at least one year to help revive the domestic economy. These measures may be reviewed when the economy shows improvement.

    Commenting on the incentive scheme announced by the government for Construction Industry, Siraj Teli urged the Advisor Finance that similar incentives should be announced across the board for all sectors.

    He stated that undocumented economy in Pakistan is twice the size of documented economy and a very large amount of capital is blocked in unproductive investments.

    He said that it would immensely benefit the economy to release the blocked capital and encourage investments into all sectors of industry and business.

    The unregistered persons in undocumented economy must be encouraged and allowed to get registered and become part of the documented economy.

    As an incentive, a policy be adopted that no questions will be asked for all such investments. In the present global crisis due to Covid-19 pandemic, no objections are likely to be raised by IMF, World Bank, G20 and FATF etc.

    It is therefore a good opportunity for Pakistan to unlock a huge untapped pool of capital.

    Siraj Teli further added that although the interest rates have been revised downward by the SBP from 13.25 percent to 8.0 percent, it is still not sufficient to stimulate the growth. Reduction in interest rates in piecemeal and installments does not provide the desired impetus to growth.

    To provide thrust the policy rate should be reduced to 4 percent in one go to stimulate growth and reduce cost of doing business.

    All major economies are taking extra-ordinary measures to reverse the decline due to Covid-19 pandemic through quantitative easing and interest rates are down to zero.

    In his presentation, Former Senior Vice President KCCI Ibrahim Kasumbi elaborated on various important proposals of the KCCI for the budget 2020-21.

    These proposals included rationalization of tariff and WHT on industrial raw materials and capital goods, expeditious disbursement on Income Tax Refunds and enhancement of the limit of Rs.5.0 million, prioritizing of refunds on the basis of aging of cases, removal of automobile and motorcycle spare parts from third schedule of Customs Act, reduction in rate of Sales Tax and removal of RD on smuggling prone items.

    In his response to the proposals and suggestions submitted by the KCCI item, Dr. Hafeez Shaikh said that despite the limitations of fiscal space, the Ministry of Finance has approved and adopted a significant number of KCCI’s proposals on the recommendation of the Federal Board of Revenue.

    He emphasized that the government is keen to stand by the business community in these difficult times and maximum relief will be provided in the budget of FY2020-21.  On the question of Income Tax refunds, Dr. Hafeez Shaikh stated that the Ministry of Finance is looking to enhance the amount of refund from Rs5.0 million up to Rs50.0 Million, depending on the available fiscal space.

    In her comments, Ms. Nausheen Jawed, Chairperson FBR informed the KCCI team that their proposals were duly considered and a number of important proposals have been accepted for inclusion in the budgetary measures for FY2020-21.

    Dr. Hafeez Shaikh thanked Siraj Kassam Teli and Agha Shahab Ahmed Khan for a productive meeting and participation of the KCCI team.

    He further assured that he will be available to discuss any issues and remaining anomalies after the budget has been presented in the parliament.