The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the government to discontinue the Rs5,000 currency note. This recommendation is a key part of their comprehensive suggestions for the fiscal year 2024-25 budget.
Among other significant proposals, the OICCI advocates for making the National Tax Number (NTN) mandatory for a range of financial activities, including opening bank accounts, and the sale and purchase of vehicles and properties. Additionally, they suggest that NTNs should be required for foreign trips and club memberships to ensure better tax compliance and tracking.
The chamber has also proposed the imposition of withholding tax on travel expenses and an income tax on air tickets. These measures aim to widen the tax net and enhance revenue collection.
The federal government is expected to review these proposals carefully before deciding on the future of the Rs5,000 banknote. This review will be part of the preparations for the upcoming federal budget, which is anticipated to exceed Rs17 trillion.
The budget is likely to be presented in Parliament on June 7, following approval from the federal cabinet in a special meeting. These fiscal measures, if adopted, could signal a significant shift in the country’s financial and tax landscape, aiming to reduce reliance on cash transactions and increase transparency in financial dealings.
