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ICCI welcomes move for cut in federal taxes

RECORDER REPORT

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has welcomed the announcement made by Finance Minister Shaukat Aziz about the reduction in federal taxes in the next budget.

ICCI President Waqar Aslam Hamdi in a statement here on Thursday has appreciated the statement of the finance minister about reduction in federal taxes to only three in number, including the income tax, customs duty and sales tax.

Hamdi said that it would give relief to the tax-payers from the burden of over taxation.

The chamber president pointed out that the wealth tax as a source of great stress upon the business community and called for its immediate withdrawal.

He said the revenue collected through this tax last year was around Rs 4 billion and the same amount is expected to be collected this year. The wealth tax is 0.5 to 2.5 percent after all other taxes are paid and it is only the rich class in the country which reaps the benefit by paying a small tax on its hidden wealth.

Hamdi said that reduction in taxes was the need of hour as the country already has over 100 taxes at the federal and provincial levels. He also stressed for the simplification of procedure on the levy of taxes.

He asked the government for broad-basing the taxation system as it would lead to increase in revenue.

Withdrawal of octroi tax, enforced on the local level has already produced good results and if the number of taxes is reduced as the finance minister promised it would lead to more investment in the country, he said.