PESHAWAR: Former Vice President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Riaz Khattak said the economic reforms package would give new breath to industry and the capital market.
Taking to media on Friday, Riaz Khattak said the package, announced by Finance Minister, Asad Umar, has accommodated the recommendations of the business community.
He said a cut in income tax rates for banks' profits derived from small and medium enterprises, agriculture, and low-cost housing financing would encourage investment and business expansion.
Removal of or cut in regulatory duty on 150 items would also bring down business expenditure and also discourage smuggling to enhance competitiveness in the industry, he added.
He said tax exemption facility to the industries in special economic zones was a good step but the same facility should be given for industrial expansion.
The Senior Official also appreciated the measures in the mini budget regarding lifting the ban to purchase vehicles on non filers up to 1300cc and removing the embargo of tax on withdrawal the amount from Rs 50,000/.
Including abolished the super tax on non banking companies as well on agriculture sector RD was reduced from 17pc to 5pc on all Diesel engines which utilised in agriculture.
He further said reduction in tax on small marriage halls was also a good omen for a common man. Besides that on small houses tax would also be reduced from 39pc to 20pc which is appreciable.
Riaz Khattak said these measures increase the confidence of masses and again automobile sector might flourish again.
Similarly on refunds of sales tax in mini budget, they would introduce an incentive to give bonds which would provide relief to the business community.
On other hand, tax exemption up to five years on all green field and power projects was a healthy incentive for a new investors which help increase investment environment in the country.
He stated that it would be a great opportunity for a foreign companies to invest in power project in Pakistan.
He also viewed that FPCCI needed to be work closely with the government. He further added that by the end of this year they would change the system of FPCCI Regional Office KPK on the corporate structure lines.
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