LCCI chief welcomes Prime Minister's pledge

President of the Lahore Chamber of Commerce & Industry Abdul Basit Sunday welcomed the Prime Minister Nawaz Sharif's pledge to remove all impediments to the economic growth. Prime Minister deserves highest appreciation for taking notice of the hurdles and problems being faced by the businessmen, Abdul Basit said. He added that economic growth could speed up provided refunds are paid expeditiously, dictionary powers that have opened floodgates of corruption are clipped, agriculture stagnation is reversed and disparity in power prices in provinces is removed.
Abdul Basit said that when the Prime Minister said that the businessmen should be provided with an enable atmosphere, he has actually spoken the language of business community. He said that delay in refunds, misuse of discretionary powers by the tax officials, attachment of business accounts, rising miseries of the agriculture sector, below the mark growth of Large Scale Manufacturing Sector, acute energy shortage, disparity in energy prices between the provinces, bureaucratic hurdles and stagnant exports are the biggest barriers to the economic growth.
The LCCI President Abdul Basit said that the role of Federal Board of Revenue is considered as a key facilitator to private sector. But our experience shows that dealing with FBR, is not always easy. Tax system is complicated and burdensome which creates room for complicities between tax payers and the tax collectors. He said that number of taxes and frequency of paying taxes must be reduced. Moreover, taxes may be paid quarterly instead of every month. For that matter, all Para tariffs must be merged in the main tariffs.
Similarly, there should be electronic communication between taxpayers and tax departments. He said that government must ensure that concerned Chinese investors and companies engaged in CPEC must consider the indigenously produced inputs from Pakistan except those goods which are not produced locally. He said that the goods which are not manufactured / produced in Pakistan, for example, Soybean meal and Grandparents Chicks should not be taxed.
Abdul Basit said section 38-B of Sales Tax Act, 1990 is being adversely used by the officials of tax department. They are paying illegal visits to markets and godowns to unjustifiably harass the business people. He suggested that teams from tax department should visit the markets, if indispensable, but they should be bound to follow due legal process and immediately stop harassing business community.
"Bank accounts should not be attached without prior notice to the taxpayer and after seeking approval in writing of Commissioner in the light of reply submitted by the taxpayer. The recovery should be after the decision of the Tribunal and not before that. Finances of business people in their bank accounts help sustain their business while when they are withdrawn by the department, it tantamount to sudden business death", the LCCI President added and further said that alternative Dispute Resolution Mechanism has to be strengthened and FBR must accept its recommendations.
He suggested that the government should take steps to control smuggling at the borders and Frontier core deployed there should be equipped with state of the art technology and made them more vigilant and to advise them to play their role in controlling the smuggling. He said that one of the major reasons of smuggling has been Afghan transit trade. Afghanistan should not be allowed to import such raw materials which are not being used there due to inexistence of such industry in Afghanistan. He suggested that the duties on such goods which are prone to smuggling should be reduced as it has been practised successfully in many other countries. He also called for reduction in duties and taxes on raw materials.
He said that Halal food sector should be given zero rated facility as the country has a little share in the international Halal food trade of about 3 trillion dollars. He said that difference in gas and electricity prices should be removed to provide level playing field to the industries throughout the country. He also called for withdrawal of ban on new gas connections for the industry.
He said that Bhasha and Kalabagh, both dams are essential for the national economy. He said that opponents of Kalabagh dam are actually safeguarding the Indian interests therefore they should not be given any weight.