RAWALPINDI, JUN 2 /DNA/ – The Rawalpindi Chamber of Commerce and Industry (RCCI) has emphasized the need for broad-based and appropriate relief measures in the upcoming federal budget. In a joint statement, President Usman Shaukat and Group Leader and former President Sohail Altaf welcomed reports of proposed tax relief for salaried individuals, calling it a step in the right direction. However, they stressed that such relief should be extended to all sectors, particularly the business community.
Referring to the auto sector, RCCI highlighted concerns regarding tax exemptions for imported vehicles. The Chamber demanded that the local auto industry be safeguarded, warning that the unchecked import of reconditioned vehicles would hurt the SME sector and result in the closure of local auto parts manufacturing units. RCCI urged the government to offer tax relief on locally manufactured vehicles to create jobs and boost industrial activity.
They called for promotion of local vendor industries associated with auto manufacturing, reduction of taxes and customs duties on auto parts and raw materials and increase in car financing limits by banks. RCCI demanded a three-year exemption from tax audits for new taxpayers, lowering of utility costs, especially electricity and gas, to reduce the cost of doing business and incentives to revive closed industrial units and encourage new investments.
Referring to their recent meeting with Prime Minister Shehbaz Sharif, RCCI stated that the Prime Minister addressed their concerns regarding the Income Tax Ordinance 2025. The PM clarified that a controversial clause was intended only for the cigarette sector and assured its immediate correction. They demanded that the given correction shall be adopted immediately.
RCCI stressed the need for policy continuity and urged that the FBR stop issuing frequent SROs, which create uncertainty. The Chamber also demanded that the tax burden not be increased on existing taxpayers.
The RCCI leadership expressed hope that the recommendations of the All Pakistan Chambers Presidents’ Conference would be reflected in the new budget. They advocated for incentives to broaden the tax net and promote voluntary compliance. Recommendations included: Incentives for installation of Point of Sale (POS) systems, Five-year exemption from audits for digital adopters. A construction package to address housing shortages, given that the construction sector supports over 40 allied industries.
RCCI also proposed a gradual reduction of GST to 10% and corporate tax to 25%, starting with a 1% and 2% cut respectively in the upcoming budget.
Further recommendations: Withholding tax reduction on increased exports, Special incentives for new exporters, Simplified and fully digital tax filing system and Tax exemptions, Technology upgrades and improved access to international markets and export rebates for key sectors: Textile, IT, Agriculture, Engineering, Automotive, and Pharmaceuticals.
Lastly, RCCI demanded the removal of the 4% additional tax on poultry feed, calling it illogical, as poultry farmers are exempt from sales tax registration.
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