KARACHI: Karachi Chamber of Commerce and Industry (KCCI) appreciated the proposed federal budget 2021-22, terming it a growth-oriented financial plan.
"The financial plan will boost growth and industrialisation in the country," said an industrialist Zubair Motiwala. However, Motiwala criticised the proposed withdrawal of Zero-rating from Petroleum Crude Oil, parts of zero-rated plant and machinery, import of plant and machinery by petroleum and gas sector and supply, repair and maintenance of ships.
He lauded the government for exempting small cars up to engine capacity of 850cc from value added tax besides reducing sales tax rate from 17 percent to 12.5 percent.
Motiwala was also seen satisfied with government's move to declare export of IT services zero-rated which according to him will help it to grow.
President KCCI Shariq Vohra said that the chamber is satisfied and happy with government's financial plan as it had accepted 60 percent budgetary proposals put forward by the business community.
He also demanded Zero-rated for the entire export sector. He said list of withholding tax had been reduced by 40 percent which is good for the business growth.
"Overall it's a positive budget", he added.
Former President KCCI Anjum Nisar hailed the government's initiative to curb harassment of taxpayers. He said that twelve sectors had been withdrawn from withholding taxes that will help the government in price controlling. He also lauded tax exemptions on small cars and zero-rating of IT sector.
Copyright Business Recorder, 2021