KARACHI: President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Abdul Rauf Alal on Saturday said that the budget 2016-17 would reverse the fall in agriculture and external trade sectors.
The FPCCI leadership also lauded the zero rating for five sectors and demanded inclusion of rice in this category as this sector was facing problems.
The FPCCI leadership was giving comments on budget at a press conference here at the Federation House; with its President Abdul Rauf Alam on video link from Islamabad who was flanked by a group of senior business leaders including Chairman of the ruling group at FPCCI Iftikhar Ali Malik, FPCCI Vice President and MNA Madam Sajjida and Zubair Tufail.
FPCCI Senior Vice President S.Khalid Tawab , Vice Presidents Zulfiqar Ali Shaikh, Mian Arshad Farooq, Acting Secretary General of FPCCI Maher Alam Khan and Director General Research and Development Cell of FPCCI Dr. Ayub Mahar were prominent at FPCCI Karachi. They also called for government's more support to cottage industry.
They were of the view that FED on cement would hurt housing sector, thus increase cost of CPEC and other mega projects. FPCCI President announced to form a committee -- with 2 members each from the main chambers- to engage with Federal Board of Revenue (FBR) and other concerned government authorities for redressal of the business community's serious concerns on different points of the budget before it is approved by the Parliament. He noted positively the decision of the government to pay refunds and demanded that entire refunds must be paid during the months of July and August.
He announced unconditional support to government's decision to put a noose on non-filers, broaden tax base and demanded reduced reliance on withholding agents.
He said the agriculture had been focused and the prices of urea in the country now matched with that of India. Whereas, he said, the agriculture loan target of Rs 700 billion coupled with two percent reduction in mark-up would support the dwindling sector of agriculture.
The rise in salaries and pensions and hike of Rs 1000 in minimum wage of workers was insufficient, he said. Abdul Rauf Alam said that duty on two thousand items have been reduced which would reduce the cost of doing business.
He lauded the decision to give tax exemption for setting up new industry during next three years and demanded zero duty and tax on import of plants and machinery.
Former vice president FPCCI, Zubair Tufail, who was assigned the task of negotiating with FBR and Finance Minister on FPCCI proposals for the budget, said most of the recommendations were included in the budget.
FPCCI Senior Vice President S. Khalid Tawab welcomed thirty years tax holiday for the new industries to be set up at Gwadar under China- Pakistan Economic Corridor (CPEC). However, he called for a level playing field to the existing industries in other areas of the country to make these equally cost and quality competitive.
He emphasized on more incentives to the agriculture sector.
Vice President Mian Arshad Farooq maintained that industry was not given required incentives. " I do not think it as industry friendly budget." FPCCI Vice President and MNA Madam Sajjida stressed on launching more government programmes for women empowerment, which should include vocational training to them and ensuring maximum participation in business activities at national and international levels.
" Government should set up a special fund for them,' she asserted.
Capt. (Retd) Abdul Rasheed Abro-- who is senior FPCCI leader and exporter/importer, and engaged with shipping industry- said increasing duties on shipping industry would discouraging ship breaking industry in Pakistan. Similarly, he said, enhancing duty on imported plastic goods and raw materials from 5 to 11 percent would damage local plastic industry.
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