Budget document reveals that govt wants growth at any cost: PBIF

KARACHI: Chairman of National Business Group Pakistan and President Pakistan Businessmen and Intellectuals Forum, Mian Zahid Hussain has said the budget is in line with government announcements and expectations of the business community.

The budget document has revealed that government wants growth at any cost and it is ready to pay for it, he said. Mian Zahid Hussain said that government has announced Rs8478 billion budget in which tax collections target is Rs5829 billion, which will be a challenge.

He said that it is estimated that mobile phones worth Rs270 billion will be imported in the next fiscal and Rs16 billion will be collected in this head which should be reconsidered as pandemic has increased importance and usage of mobile phones.

He said that taxes on telecommunication equipment and services must be reduced while the PM has rejected more taxes on calls, SMS, and internet packages, which is a welcoming move.

Online shopping will also attract taxes worth eleven billion rupees and locally manufactured cars up to 850 cc will attract 12.5 percent sales tax while FED has been abolished.

He said that local manufacturing of electric cars has been encouraged by reducing sales tax from 17 percent to 1 percent which may lure investors.

The business leader noted that customs duty has been enhanced on imported luxuries like makeup, shampoo, food items, and perfume, etc. which will help the government generate Rs11 billion and it may become an incentive for smuggling.

He criticised the imposition of Rs1 tax on every kilogram of sugar produced in the country while the decision to increase the price of batteries amid load shedding should be reversed.

Duty on some raw material has been slashed, which reversed totally on other items, which will reduce the cost of doing business.

Copyright Business Recorder, 2021