Supplementary finance bill elicited varying reactions from business community, saying although the government has not imposed new taxes on the industrial sector yet it has left many areas unaddressed. Incentives for low-cost housing, especially for the poor segment of society, will help boom construction industry and it will result in creating employment opportunities.
Talking to Business Recorder, Federation of Pakistan Chamber of Commerce and Industry (FPCCI) SVP Mirza Ikhtiar Baig said the government has taken a few positive steps to help the industrial and business sectors of the country in the supplementary budget.
He appreciated the govt for ending dual taxation and introducing promissory notes to pay refunds of business community. Baig also hailed govt for announcing cut in gas infrastructure development cess (GIDC). He said industrial sector was already getting gas and power at subsidised rates but still cost of doing business in Pakistan as compared to other neighbouring countries is high.
Baig said the government didn't take revolutionary steps to enhance the country's exports. He said the removal of withholding tax for securities will help improving the Pakistan Stock Exchange activities.
He said privatisation process should have been focused as the government has to pump multibillion rupees in funding Pakistan Steel Mills and Pakistan international Airline (PIA). They said if the government had presented a clear stance on privatisation, it would have created further fiscal space for the government to earmark additional amount for agriculture, developmental and social projects.
Another issue which the government has not addressed is the dealing with circular debt which is playing havoc with overall economic and social development. The govt must have brought a clear plan to deal with circular debt which has reached Rs1.4 trillion mark.
FPCCI SVP said positive steps have been announced in the mini-budget and the government has accepted the demand of commercial importers in connection with withholding tax.
Another business community leader and former SVP of FPCCI Khalid Tawwab said the mini-budget has resolved the issue of refunds to exporters. He said several industries had already been closed down as a large amount of the small traders' money is stuck with the govt under the export rebate.
The tax reduction in agricultural and housing sectors will help improving the situation, said Daru Khan, another FPCCI office-bearer. "We will cooperate with the government like always as the recommendations we sent have been implemented."
"We support the government's decision to enhance exports and curtail imports," said Mazhar Nasir, the senior vice president of the chamber. "The tax waiver for fire fighting apparatus is a good step in the right direction."
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