Essential commodities: FBR considering reducing tax rates thru FY24 budget

ISLAMABAD: The Federal Board of Revenue (FBR) is considering a proposal of reduction in tax rates on essential commodities in budget (2023-24) including reduction in the additional customs duty (ADC) from two percent to zero percent on imports by the ghee and oil sector.

During a recent meeting of the Islamabad Industrial Association (IIA) with Finance Minister Ishaq Dar, the association submitted budget proposals for 2023-24. The association proposed restoration of the fixed tax regime for the steel sector.

Other proposals included permission of wheat imports by the private sector to bridge shortfall, declaration of rice as an industry, tax exemption to students working in the IT sector, level playing field for the solar sector and tax amnesty for the construction sector.

The delegation led by the President of IIA, Muhammad Ahmed lauded the improvement in the exchange rate, reduction in the price of petroleum products and hoped that it would provide relief to the masses and the business community.

VP Usman Shaukat, Sheikh Tariq Sadiq, Mian Akram Farid, Zakria Akbar Zia, Mian Shaukar Masood, Sheikh Aamir Waheed, Atif Ikram Sheikh, Malik Sohail Hussain, Umais Khattak, Nasir Qureshi and other prominent industrialists from the Federal Capital were also part of the delegation.

The minister was accompanied by the Special Assistants to the Prime Minister Ishfaq Tola and Tariq Bajwa and Chairman FBR Asim Ahmed.

Muhammad Ahmed said the industrial sector should be bailed out and urged the finance minister to consider proposals for inclusion in the upcoming budget.

Other members of the IIA also gave suggestions from their respective industries and highlighted prevailing challenges hampering industrial development.

Minister Ishaq Dar attentively listened to the proposals, appreciated their proactive approach and efforts to engage with the government in shaping economic policies.

He took note of the concerns raised by the industrialists and assured them of the government’s commitment to addressing the challenges confronting the business-friendly environment.

The finance minister thanked the delegation for their valuable input and assured them that their concerns and suggestions would be given due consideration.

Malik Sohail hoped that the proposals by the IIA would play a significant role in shaping economic policies and ensuring growth and prosperity.

Copyright Business Recorder, 2023