Business community expects relief in budget

Islamabad:The business community has high expectations from the upcoming budget, and appropriate relief measures should be introduced, said the Rawalpindi Chamber of Commerce and Industry (RCCI).

Speaking on recent reports about tax relief for salaried individuals, RCCI welcomed the news and emphasized that such relief should be extended to all segments of society, not just salaried individuals.

The Chamber expressed hope that the proposals presented in the joint declaration of the All Pakistan Chambers Presidents’ Conference would be incorporated into the budget. RCCI stated that while exemptions are being announced for imported vehicles in the auto sector, protection for the local auto industry must also be ensured. Tax concessions should be granted on locally assembled vehicles to boost employment. The local auto parts and vendor industry should be promoted by reducing taxes and customs duties on auto parts and raw materials.

To support car buyers, the loan limit for car financing from banks should be increased. To encourage tax compliance, new taxpayers should be granted a three-year exemption from tax audits.

The Chamber demanded that utility charges, especially electricity and gas, be reduced to lower the cost of doing business. This would facilitate the establishment of new industries and help revive closed industrial units.

They also proposed that withholding agents should be recognized as partners and granted a 10% tax credit on collections. Referring to a meeting with Prime Minister Shehbaz Sharif, RCCI stated that the PM had addressed their concerns about the Income Tax Ordinance 2025 and clarified that the proposed amendment was intended solely for the tobacco sector, and that it would be corrected immediately. The Chamber stressed the need for policy continuity and urged that FBR should avoid frequent issuance of SROs. Existing taxpayers should not be overburdened.