RAWALPINDI: The Rawalpindi Chamber of Commerce and Industry (RCCI) on Wednesday said the mini-budget had increased the miseries of the people and cause the economy to shrink and stagnate.

In a meeting of the RCCI Standing Committee on Tax Affairs, RCCI president Nadeem Rauf said for the first time so many amendments had been made in the supplementary finance bill.

“Usually, such amendments are made in the finance bill,” he said adding the business community was not against documenting the economy.

The existing taxpayers are overburdened, he added.

“Withdrawal of exemptions and imposition of 17pc sales tax will increase people’s miseries and cause the economy to shrink and stagnate,” he said.

He said that there are serious concerns over digital payment of Rs250,000 to the business community as at present banks do not have the capacity to adopt digital payment methods.

“Keeping ground realities, this is neither applicable nor implementable,” he said.

“Sales tax has been increased to 17pc for food items, machinery, solar, poultry, bakery items, steel, gold and silver, hospitals, medicines, milk, eggs on which there was tax exemption or minimum tax.

People and the businessman are already suffering from inflation. Inflation has now jumped to double digits.

He said unfortunately budgeting and policy making had been done without consulting stakeholders. In the health sector, taxes have also been levied on medical devices, raw materials used in medicines, which will make treatment more expensive.

In the field of education, the imposition of sales tax on books, pencils and stationery will also make education more expensive.

“Sales tax has also been imposed on all types of machinery. This will increase business costs and reduce investment, reduce employment opportunities and further reduce the economy,” he said.

Group leader Sohail Altaf said the Rawalpindi chamber would not remain silent. The concerns on supplementary finance bill will be raised at every forum to bring relief to the business community and the public.

Committee chairman Faraz Fazal said for the economic development of the country, it is necessary to increase business opportunities and facilitate, economic growth is not possible by setting tax targets or raising tax rates. The FBR needs to increase its capacity.

Published in Dawn, January 20th, 2022