OICCI appreciates federal budget

The Overseas Investors Chamber of Commerce and Industry (OICCI) has appreciated the efforts of the government in announcing a budget with positive measures despite the economic difficulties and operating constraints prevalent in the country. The OICCI President, Naved A. Khan, while commenting on the Budget 2011-12 said that he was pleased to note that through the budget 2011-12 the government has tried to provide relief to the business community.
He said that the OICCI members would continue to play their part in contributing towards the economic recovery of the country. Naveed hoped that the government would make the difficult decisions of broadening the tax base and adopting taxation policies that will encourage FDI and local investment on sustained basis. He stated that the government's announcement of discontinuing the flood surcharge and Special Excise Duty, along with removing regulatory duty and 1 percent reduction in General Sales Tax (GST) has been widely appreciated.
This will certainly reduce the cost of doing business and will provide much needed relief amidst increasing costs of security and power. The increase in income threshold will help salaried individuals, while provision of tax credit for equity based investments in manufacturing facilities will help in promoting the industrial sector and in creating additional job opportunities in the country.
Naveed further maintained that the budget does have certain grey areas with negative implications for some segments of the economy. He also spelled out some of the major areas of concern in this regard. The OICCI represents over 180 foreign companies doing business in Pakistan, many of whom began operations in Pakistan over 60 years ago.
OICCI is the oldest chamber in the country and region having been established 150 years ago. OICCI members collectively contribute over 29 percent towards Pakistan's total GNP, 22 percent of total tax receipts, provide direct employment to approximately 150,000 people and spend Rs 1 billion a year on CSR. OICCI also plays an active role in terms of representation and advocacy to the government, various regulatory bodies, and policy makers, it was further stated.