Mixed reaction on budget

Business community has termed the budget for the year 2011-12 as worthwhile efforts have been made to mobilise business and industrial activities in the country in the present circumstances. However detailed comments can only be made after going through budget documents and SRO.
Leader of Businessmen Group (BMG) and former President Karachi Chamber of Commerce and Industry (KCCI), Siraj Kassim Teli said that efforts has been made to change the direction from consumer economy to industrial economy. He said removal of regulatory duty on 392 items and waiver of special excise duty will help reducing prices of goods and benefit the consumers.
He said Federal Finance Minister Hafeez Shaikh has given no detail of budgetary measures to generate Rs 2.5 trillion in his 20 minutes budget speech. Details comment can only be made after seeing budget documents, he added. Teli said that the government has made efforts to overcome double taxation and reduction of excise duty from Rs 700 per metric ton on cement to Rs 500 per metric ton will help boost construction activities in the country.
He also appreciated efforts to bring 700,000 more wealthy peoples in tax net who own luxury houses, car, and frequently travel abroad and contribute nothing in taxes. It was our demand not to further burden present tax payer and tap new avenues for generating additional taxes.
President KCCI, Mohammad Saeed Shafiq said that the chamber would hold a press conference on Monday to make comprehensive comment on the budget after going through budget documents. Mohammad Saeed Shafiq appreciated reduction in General Sales Tax (GST). He was of the view that budget deficit which was placed at Rs 850 billion could be narrowed down if government adopted chamber budget proposals. Commenting on the budget, Advisor to Chief Minister Sindh on Investment, Zubair Motiwala made it clear the zero rates sector remained as it is. He termed the budget as a camouflaged budget and comment in details cannot be made without seeing budget documents.
He was of the view that the government must impose tax on all incomes exceeding exemption limit including income from agriculture sector. He further said that the government must provide water, power, gas, so that the industries should run on full capacity and facilitate local and foreign investors to make investment in the country. He appreciated allocation of funds for alternative energy.Senior Vice President KCCI, Talat Mehmood appreciated efforts made to bring 2.3 million new taxpayers in tax net. He welcomed the withdrawal of regulatory duty.
Vice President KCCI, Junaid Esmail Makda appreciated reduction of duty on 40 items and withdrawal of special excise duty. He said that the taxes were reduced which will help people to get some relief. Junaid Esmail Makda said that it is too early to comment on the budget.
Chairman, Pakistan Chemical and Dyes Merchant Association (PCDMA), Haroon Agar said that one- percent increase in duty for commercial imports will pave the way of bungling. However, waver of regulatory duty will help reduce smuggling through Afghan Transit Trade (ATT). Former President KCCI, Anujm Nisar said that reduction of duties and taxes will reduce smuggling.