HYDERABAD: President Hyderabad Chamber of Commerce and Industry (HCCI) Adeel Siddiqui has opposed increase in tax slabs and said that government should broaden its tax net instead of increasing slabs. He said traders and businessmen would have no option but to migrate from Pakistan in such conditions.
In his reaction over federal budget 2023-24 on Monday he said that finance bill 2023-24 was amended by government which could not be appreciated as far as increase in tax slab was concerned.
He explained that in view of amendment tax slab was increased from 20pc to 22.5pc for those earning Rs2.4m per annum. He said slab was increased from 25pc to 27.5pc for having income of Rs3.6m annually and people having taxable income of Rs6m per annum would be paying 35pc instead of 32.5pc tax now.
He said that all sorts of sales to unregistered persons had been taxed by 4pc now from 3pc.
HCCI Chief said business community doesn’t support increase in slabs and Pakistan’s economy could only be strengthened by broadening tax net as increasing slabs for taxpayers would not be helpful. He said it would not help tax collection. “In fact 1.6m taxpayers are being pressed further to pay more tax. Traders and businessmen are being compelled forced to leave country”, he said.
He urged the government to take prudent decisions as it was great injustice with businessmen who are paying taxes. Business community, he said, should be offered incentives.
Mr. Adeel Siddiqui said tax net could not be increased in present conditions and indirect taxation was always detrimental for economy. He said that present economic conditions don’t allow government to take wrong decisions. He said that taking care of industry and businesses had become difficult.
He said bank markup of 22pc would be detrimental for industrialization and exports sector. He said industries were facing closure when markup was 21pc which had been increased to 22pc. He added this would put more burdens on industrial sector now.
President HCCI feared government traders and industrialists would be facing default in first quarter of new fiscal year. He believed that increased markup, expensive utilities, increase in tax slabs would be the factors behind closure of industries.
He informed federal and provincial governments were unable provide facilities to industrial infrastructure and industrialists were realizing that more investment in industry was economically harmful for them now. He said that one industrial unit provides jobs to 2,000 laborers and this increase in tax slab and bank markup would not go down well with industrial sector.
He called upon government to end these policies as Pakistan’s economy could not afford wrong policies.
Copyright Business Recorder, 2023
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