Lahore: United Business Group (UBG) Chairman Iftikhar Ali Malik on Tuesday proposed a fixed ‘COVID-19 tax’ for inclusiom under Budget 2020-21, a news source reported. He added that the government should levy this tax on the undocumented economy.
Malik recommended that the government should try to increase the value of the rupee by reducing the cost of raw material imports. He said that this measure would make the output of national industries more competitive. He further asked for the import substitution industry to be encouraged and urged the government to ban the import of luxury goods.
The UBG chairman suggested that the government should promote local industries with low-cost inputs, zero duties on raw materials, and no sales tax for at least two years. Similarly, he said that the bank rate on interest on credit should remain 10% or lower for at least the next two years.
For the documented economy, Malik proposed a decrease in income and sales taxes; although, he did ask that people continue to pay their due taxes even in these trying times. He added that there should be a minimum number of new development plans in order to encourage tax incentives.
Finally, Malik highlighted that the government should prioritise the restoration of the national economy, as well as the industries and sectors that produce various necessities of life.
