KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) showered the government with praise for announcing a business-friendly budget.
In a press statement issued here, OICCI President Asad Jafar said that bringing fiscal deficit below 5 per cent, enhancing tax collection by 24pc and increasing Public Sector Development Plan (PSDP) by 25pc would have positive impact on overall economy.
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He further said that incentives proposed for textile sector, manufacturing and construction sectors would help revive economic growth.
The focus on increasing direct taxation is also in the right direction together with new measures to boost tax collection and broadening of the tax base.
Considering the large size of the undocumented economy Asad said the measures suggested in the budget were positive, but cover only a small portion of the informal sector.
The reduced corporate tax rate to 33pc would build confidence amongst the large tax paying corporate sector.
He said the chamber supports the three-year fiscal policy parameters which include raising tax-to-GDP ratio by 1pc annually to 13pc and investment ratio to 20pc by 2016-17. The withdrawal of exemptions introduced through SROs was a good move.
