OICCI Proposes Discontinuation of Rs5,000 Banknotes

The Overseas Investors Chamber of Commerce (OICCI) has proposed the discontinuation of Rs5,000 banknotes as part of their recommendations for the upcoming budget for fiscal year 2024-25. The OICCI, representing 200 multinational companies advocating for foreign investors' interests, aims to address currency circulation issues in Pakistan.

One of the key suggestions by the OICCI is to make the national tax number (NTN) mandatory for various financial transactions, including bank accounts, car sales, property transactions, foreign travels, and club memberships. Additionally, the chamber has advised the creation of a dedicated wing within the Federal Board of Revenue (FBR) to investigate assets and income sources that do not comply with non-filer regulations, along with the elimination of tax exemptions for pensioners.

Moreover, the OICCI has recommended imposing income tax on air tickets and withholding taxes on hotel and travel expenses. The proposal to discontinue the Rs5,000 banknote aligns with previous calls from political figures and former FBR officials to combat corruption and reduce the influence of the cash economy in Pakistan.

The OICCI's recommendations, if implemented, could have significant implications for the financial landscape of Pakistan. By addressing currency circulation challenges and enhancing tax compliance measures, the proposed changes aim to promote transparency and accountability in the country's economic system. It remains to be seen how these suggestions will be incorporated into the upcoming budget and what impact they will have on Pakistan's financial sector.