The Council of Karachi Industrial Associations (CKIA) has suggested that the excise duty on petroleum, oil and lubricants (POL) products prices be abolished and the fuel surcharge be reduced to give relief to all common man as well as business community. In its budget proposals for the year 2005-06, the CKIA has suggested that the maximum limit of corporate tax be reduced to 30 percent. Regarding the import duties, the association proposed that slabs for import duty should be limited to three ie 5 percent, 10 percent and 20 percent. The CKIA suggested that the upper limit of sales tax should be reduced to 10 percent and it should be levied on all products and on every stage.
It is also suggested that withholding tax on imports be reduced to 2 percent from 6 percent on the import of raw material. The multiple taxes should be rationalised and there should be only three types of taxes and duties viz, income tax, sales tax and customs duty.
The association further proposed that the export development fund should be abolished.
Regarding the export refinance rate, the association proposed that the export refinance rate be immediately de-linked from the treasury bills rates.
The association proposed that import of second hand machinery and parts should be allowed and ban on import of second hand boilers should either be lifted or the time duration of the boilers be extended to 10 year.
The association pleaded that import of plant and machinery not manufactured in Pakistan should be allowed from India.
The association further suggested that at least 4 percent of the budget be allocated for education and there should be substantial increase in the allocation for health sector.
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