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Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has appreciated budget proposals 2015-16 presented by Finance Minister Ishaq Dar Friday. Talking to Business Recorder, Mian Idress President FPCCI said most of our proposals have been considered and accordingly incorporated in the next fiscal year budget.
"Although the government has enhanced sales tax from 3 to 5 percent for five leading exporting sector, we appreciate the initiatives taken for the economy particularly exports. We believe that the textile package amounting to Rs 64 billion will support the textile industry and exports," he said.
President FPCCI said that for the last one year, business community and exporters were urging for payment of refund claims and the finance minister in his budget speech has committed to releasing the entire pending refund amount in August and September this year. This will provide financial support to exporters, he added. The steps taken for the revival of economy are also encouraging. Energy crisis persisting in the country for the last five years, has largely been addressed in the budget and as per FPCCI demand, the government has announced some relaxations for import of power plants. This will help overcome the ongoing energy crisis, he said.
"Regarding import of power plants, we have suggested to the government not to link import of power plants with the dollar or price and accordingly, the government has announced linking its import with megawatt. Definitely, this will support the domestic industry to generate their own power for a better productivity," he added. For the first time, construction sector has been recognised in the federal budget. Some 42 industries are associated with this sector and relief for construction sector will create new job opportunities, besides supporting other industries and providing new housing facilities in the country, Idress said.
President FPCCI said that the government has also considered the Federation's proposal regarding special package for KP, as its economy is affected by terrorism. The government announced a special relief package for KP. Replying to a question, he said that the federal government has not considered any proposal on zero rating of five leading sector, however we are hopeful that the government will resolve this issues soon.
Rafique Suleman, Chairman Rice Exporters Association of Pakistan (REAP) and Abdul Rahim Janoo, Senior Vice President, FPCCI & Chief Patron of REAP welcomed the Federal Budget for the year 2015-16 and appreciated the steps taken by the federal government to grant tax-free status to rice mills for one year.
In addition, reduction in the import duty and sales tax on agricultural machinery is also a very good step and we are hopeful to see long lasting results next year, they added. "This will also increase sowing of rice besides boosting the export of rice," they said.
Dr Shahzad Arshad Chairman Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association criticised the budget measurers saying that budget is not industry friendly and it is believed that the industry will face new challenges in next fiscal year.
"Our major demand was zero rating of the textile sector and payment of pending refund claims. Both issues have been addressed but not resolved. The government has raised sales tax from 2 to 5 percent for textile sector, instead of zero rating demanded by exporters," he said.
In addition, for the last one year, the finance minister is promising release of pending refund amount; however the promise has still not been fulfilled. While in the budget, the minister has again committed paying the entire amount in next three months, ie, August and it is likely to remain a promise, he added. Talking about the tax measures, he said that no steps have been taken to broaden the tax net and it will ultimately enhance the tax burden on already overburdened taxpayers. President Pakistan Businessmen and Intellectual Forum (PBIF) Mian Zahid Hussain said that overall impact of the federal budget is positive, well thought out and set to take off the national economy but at the same time has no focus on SME sector, women empowerment and cottage industry.

Copyright Business Recorder, 2015

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