KARACHI: Former president of Karachi Chamber of Commerce and Industry (KCCI) Siraj Kassem Teli on Friday termed the proposed federal budget for FY 2020-2021 a 'guesswork' of the PTI-led federal government which he said by no means a 'relief budget'.
Giving his reactions over the budget presented by the Federal Minister for Industries and Production Hammad Azhar at the National Assembly, Teli said though the government has proposed no taxes with new names, but has made some additions and subtractions in already imposed taxes on some sectors.
The new financial plan lacks relief for the Covid-19 hit local businesses, importers, exporters, small and medium enterprises who have been severely affected due to the recent lockdown.
Ideally, it should have been a relief budget. Taxes and utility tariffs should have been reduced to ease the sufferings of industries, businesses. "It's a pick and choose budget. Only a few sectors have been given relief." he deplored.
"Taxes on beverages and energy drinks have been enhanced from 13 percent to 25 percent under the pretext of healthcare," Teli said.
He was of the view that government's proposed revenue collection targets are apparently not achievable given the fact that impacts of Covid-19 pandemic would be more severe in moths to come.
IMF and G-20 countries have already provided Pakistan relief by deferring loans, but the incumbent government failed to pass on those advantages to its citizens and businesses.
KCCI president Agha Shahab Ahmad Khan said "We feel that the government's targets for GDP, manufacturing, agriculture and services are not achievable as the entire world including Pakistan is going through an economic downturn, due to Covid-19. The government will have to revisit its calculations / estimates if the virus continues spreading for the next few months.
He said all sectors have importance and the government should provide incentives and relief, but manufacturing is crucial for the employment generation and promotion of domestic economy. In this budget, he said manufacturing has been neglected. "Wealth creation is not possible without industrialization and transformation of society," he said.
Former SVP Ibrahim Kasumbi said the government has incorporated some recommendations of KCCI. He said the trade body's fundamental demand of reduction in sales tax from existing 17 percent to 8 percent was not accepted as not a single percent cut in ST has been proposed in the budget.
"We had submitted proposals with the federal government, urging it to come up with a relief based and tax free budget in the face of Covid-19, but to no avail," BMG general secretary A Q Khalil said.
He said KCCI had also put forward a genuine demand for introducing schemes for different industries including IT sector in order to attract investment and job opportunities, likewise the government has come up with a scheme for the textile and Naya Pakistan Housing Scheme.
KCCI had recommended an across the board 50 percent cut in the taxes for one year, however the government has proposed bringing the Customs Duty to Zero on most of raw materials imports of some sectors, while additional Sales Tax has been abolished on raw materials import whereas taxes on some sectors have been enhanced.
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