Speaking at a reception organized by Pakistan Pharmaceutical Manufacturers' Association (PPMA) at a local hotel, they said that the business community will hold protests if wealth tax is imposed without consultation.
President India-Pakistan Chamber of Commerce and Industry and leader of business community S. M. Munir said that the wealth tax should not be imposed as its imposition will encourage capital flight from the country. He said that wealth tax is not imposed in any country in the world.
He advocated the construction of more dams to overcome the serious issue of shortage of power and water in the country.
Referring to two-weekly holidays, Muneer suggested that it should be only in the government departments and the banks should be exempted from these holidays so that industrial activities could be continue.
Speaking on the occasion, Israr Rauf, Member Tax FBR assured the business community that they would be consulted over the imposition of new taxes in the upcoming federal budget.
He pointed out that the tax-to-GDP ratio of 9.1 percent in Pakistan is the lowest in the region and there is a need to expand the tax net in the country at appropriate level.
The FBR has planned to increase tax-to-GDP ratio to 9.5 percent by 2012. Eventually the tax-to-GDP ratio would be increased to 12-13 percent by 2014, he added and asked the business community to support the government to achieve this target.
He asked the pharmaceutical and other sectors to send their budget proposals to FBR so that they could be considered for the upcoming federal budget.
He said that five export oriented sectors have been declared zero rated which is a big break through for the industrial sector.
Sindh Health Minister Dr Saghir Ahmed said instead of increasing taxes on existing tax payers, the government should bring other sectors including agriculture income under tax net to generate more revenues.
Tariq Saeed said the business community will not accept imposition of wealth tax at any cost and a country-wide protest will be launched if the government tried to impose it.
Senator Abdul Haseeb Khan also suggested that the machinery and raw material for pharma sector should be tax exempted. He also advocated for zero rates tax for the pharma sector.
Haroon Qasim, Chairman PPMA said on this occasion that the country's pharmaceutical sector is catering to about 90 percent of the requirements of the country through local manufacturing.
He said that the county's pharma industry has capability to increase its exports to $ 1 billion mark.
He said PPMA has strongly recommended to the ministry of health to form a Drug Regulatory Authority so that the exports can grow at a rapid pace.
He suggested that the pharmaceutical products should be made zero rates to be able to claim input tax adjustment, or the supplies and services to pharmaceutical sector should be zero rates.
Former KATI president Mian Zahid Hussain and PPMA Sindh chapter chairman Dr Qaiser Waheed also spoke on this occasion and talked about issues being faced by the country's industrial sector.