Government mulls incentivising expatriates, allied industries to boost remittances
Business
Tax reductions under RD and ARD is being proposed to incentivise some allied industries
ISLAMABAD (Dunya News) - Proposals of increasing incentives for overseas Pakistani residents and allied industry have surfaced during deliberation for the next fiscal year’s upcoming budget.
According to sources, a proposal to provide incentives to overseas residents have been pondered upon for the upcoming budget in order to boost remittances through proper banking channels. The idea of providing incentives for overseas investment in the construction sector of Pakistan was also pitched, the incentives will be focused on investment by overseas Pakistanis for houses, flats, and commercial areas in the country.
To promote the growth of allied industry, a proposal for a reduction in regulatory and additional regulatory duties has been made. A reduction in taxes is also being proposed for steel, cement, tiles, and other allied industries.
Recommendations for a 15% reduction in RD (Regulatory Duty) and 15% reduction in AED (Additional Customs Duty) on the import of steel and tiles have been put forward. Currently, 30% RD and AED is being levied on the imports of steel and tiles.
Although, a lot of relief measures are being proposed for the upcoming budget but the government and think tanks have been repeatedly saying that the intensity of relief depends upon IMF’s approval. Currently, the government has been unable to make progress in the stalled IMF program and according to various think tanks the country will default after the loss of IMF lifeline.
Also, even the allies of the government have been pessimistic about the relief measures being proposed in the upcoming budget as they fear that government might not be able to table a poor-friendly budget. Pakistan faces mountainous amount of debt repayments and the country is currently grappling with the scarcity of forex reserves.
