Rs5,000 Notes
As the budget announcement for fiscal year 2024-25 approaches, the Overseas Investors Chamber of Commerce (OICCI) has proposed a series of measures to the government aimed at promoting a more transparent and documented economy.
Key among these recommendations is the abolition of the Rs5,000 banknote, which the body believes will help discourage cash transactions and reduce the circulation of black money.
The OICCI, which represents over 200 multinational companies and foreign investors, has also suggested making the national tax number (NTN) mandatory for various transactions, including opening bank accounts, purchasing cars and expensive properties, foreign travel, and club memberships. This move is expected to bring more people into the tax net and reduce tax evasion.
Furthermore, the OICCI has recommended the establishment of a dedicated wing within the Federal Board of Revenue (FBR) to investigate assets and income sources that do not meet the requirements of non-filers.
Additionally, the body has proposed the abolition of tax exemptions for pensioners and the introduction of income tax on air tickets and withholding taxes on hotel and travel expenses.
It is worth noting that calls for the discontinuation of the Rs5,000 notes have been made in the past. Last year, a PTI senator, Mohsin Aziz, tabled a resolution in the Senate seeking a ban on the highest denomination of Pakistani currency to curb corruption and inflation.
Similarly, former FBR chief Shabbar Zaidi has emphasized the need to discontinue the Rs5,000 note and restrict the physical movement of dollars to curb the cash economy in Pakistan.
The government is expected to present the budget for fiscal year 2024-25 on June 7, although an official date has not been announced.
The OICCI’s recommendations are aimed at promoting a more documented and transparent economy, and it remains to be seen which of these proposals will be incorporated into the upcoming budget.
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