RAWALPINDI - Rawalpindi Chamber of Commerce and Industry (RCCI) has submitted to the Federal Board of Revenue (FBR) a set of proposals for consideration and incorporation in the federal budget for 2016-17, stating that these proposals would help increase economic activity and widen the tax net thereby increasing the government revenue.

RCCI President Mian Humayun Parvez said that the proposals had been categorized into income tax, sales tax and import and export with special focus on the documentation of the economy.

Key proposals in the category of income tax relate to broadening the tax base. It was suggested to set up a business registration authority. Chamber membership should be made compulsory for the businesses operating all over Pakistan. This step would eventually lead to centralize the tax related data. Reduction in the rate of income tax has also been sought.

RCCI said that corporate tax should be brought down to 25% form 33% and Sales Tax rate should be reduced to single digit of 5% gradually.

Government should take additional measures to incentivize exports and taking other measures to ease the cost of doing business and improving the overall regulatory regime to facilitate exporters.

RCCI president suggested that there is a need to address the key issue of massive under-invoicing/dumping of imported products.

Government should convert the Youth loan scheme into a venture capitalist scheme.

It was suggested to reduce the duty on coal import so that the cement industry can be flourished. IT companies who export softwares are exempted from taxes till 2016. An extension of such subsidy was suggested. A concentrated efforts and checks must be placed in budget to monitor smuggling, RCCI president suggested.