ANL 12.50 Decreased By ▼ -0.12 (-0.95%)
ASC 14.79 Increased By ▲ 0.14 (0.96%)
ASL 15.28 Decreased By ▼ -0.32 (-2.05%)
AVN 106.20 Increased By ▲ 1.95 (1.87%)
BOP 8.40 Decreased By ▼ -0.02 (-0.24%)
CNERGY 6.18 Decreased By ▼ -0.29 (-4.48%)
FFL 9.07 Decreased By ▼ -0.10 (-1.09%)
FNEL 8.50 Decreased By ▼ -0.45 (-5.03%)
GGGL 13.09 Decreased By ▼ -0.31 (-2.31%)
GGL 20.20 Decreased By ▼ -0.68 (-3.26%)
GTECH 9.35 Decreased By ▼ -0.35 (-3.61%)
HUMNL 6.77 Increased By ▲ 0.17 (2.58%)
KEL 3.10 Decreased By ▼ -0.06 (-1.9%)
KOSM 4.11 Decreased By ▼ -0.23 (-5.3%)
MLCF 33.35 Decreased By ▼ -0.30 (-0.89%)
PACE 4.15 Decreased By ▼ -0.05 (-1.19%)
PIBTL 7.17 Decreased By ▼ -0.07 (-0.97%)
PRL 14.09 Decreased By ▼ -0.25 (-1.74%)
PTC 8.58 Decreased By ▼ -0.10 (-1.15%)
SILK 1.29 Decreased By ▼ -0.05 (-3.73%)
SNGP 33.50 Decreased By ▼ -0.30 (-0.89%)
TELE 17.48 Decreased By ▼ -0.40 (-2.24%)
TPL 12.75 Decreased By ▼ -0.75 (-5.56%)
TPLP 27.60 Decreased By ▼ -0.42 (-1.5%)
TREET 38.87 Decreased By ▼ -0.82 (-2.07%)
TRG 80.75 Decreased By ▼ -2.55 (-3.06%)
UNITY 27.32 Decreased By ▼ -0.53 (-1.9%)
WAVES 14.94 Decreased By ▼ -0.11 (-0.73%)
WTL 2.15 Decreased By ▼ -0.07 (-3.15%)
YOUW 7.90 Decreased By ▼ -0.19 (-2.35%)
BR100 4,585 Decreased By -11.3 (-0.25%)
BR30 17,412 Decreased By -369.7 (-2.08%)
KSE100 44,924 Decreased By -94.4 (-0.21%)
KSE30 17,727 Decreased By -21 (-0.12%)

coronavirus
Coronavirus
VERY HIGH
Source: covid.gov.pk
Pakistan Deaths
29,105
824hr
Pakistan Cases
1,374,800
7,19524hr
Sindh
526,899
Punjab
464,431
Balochistan
33,941
Islamabad
118,292
KPK
185,340

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has termed the federal budget 2021-22, full of anomalies, anti-growth and prepared without taking business community on board.

In a letter to Prime Minister, Imran Khan, FPCCI President, Mian Nasser Hyatt Maggo said that Finance Minister, Shaukat Tarin, must have lived up to his promise that budget 2021-22 will not be finalized without consulting FPCCI; the apex body representing trade, industry, and services in the private sector.

FPCCI is of the view that FBR is responsible for introducing anti-business and anti-growth income tax statutes in the Federal Budget 2021-22; through which they have sought to enhance their discretionary powers, e.g. Section 203A and Section 127 of ITO.

According to the letter, well before the budget in February 2021, FPCCI had proposed simplification of tax system and reduction in tax rates to the Prime Minister; on which he directed FBR to look into FPCCI’s recommendations. But, unfortunately, FPCCI’s recommendations on tax reforms were not incorporated in the budget.

Contrary to the traditions, FPCCI president or his nominee has not been given chairmanship of the governmental budget anomalies and technical committee – and, the apex body has been completely ignored in the technical committee, Maggo added.

FPCCI maintained that the technical sub-committee must not comprise of currently practicing tax lawyers and consultants to rule out conflict of interest and ensure neutrality.

According to president FPCCI, the lame clarification being given by FBR on income tax statute on Section 127 is illogical and out of sound mind and FPCCI is of the view that the Finance minister must not have given approval to issue such a clarification on Section 127. Section 127 is also in contradiction to the structure of the Constitution of Pakistan and defies Section 10A of the constitution blatantly.

FPCCI also demanded separation of tax judicial system from tax collecting machinery to make it comply with the constitution. This best-practice recommendation was also overlooked and FPCCI demands that this provision must be incorporated in the final draft of the budget. The apex body of business community is also concerned about non-withdrawal of CNIC condition on sale; which continues to hinder business and trade activities and growth within the country.

FPCCI has strongly recommended that Tax Policy Unit under Ministry of Finance & Revenue should formulate the taxation system in the budget not FBR. Sectoral strengths, weaknesses, and needs should be properly analyzed before imposing any form of taxation by Tax Policy Unit.

“FPCCI firmly believes that current budget, proposed and manipulated by FBR, is strictly conventional in nature and does not provide relief to businesses and does not promote economic growth. Various industries and sectors are compelled to spend millions of their hard-earned funds to advertise in print media and make their voice heard,” Maggo continued.

“The proposed budget is full of anomalies and contradictions; so it should be revised in consultation with the business community before being finalized and approved,” he said.

Copyright Business Recorder, 2021

Comments

Comments are closed.