LCCI President Ijaz A Mumtaz says elimination of discretionary powers of FBR on issuance of SROs is a welcome step
LAHORE: The government has not announced any incentive for the textile industry, while Rs 160 billion refunds of the sector have also not been talked about in Budget 2015-16. The budget is not pro-industry but pro contractor.
The government has presented a balance budget and elimination of discretionary powers of Federal Board of Revenue (FBR) in issuance of SROs is a welcomed step of the government.
These were the mixed views of the business leaders of Lahore after the federal government announced Budget 2015-16 here on Friday.
All Pakistan Textile Mills Association chairmen SM Tanveer told Customs Today that budget 2015-16 was anti industry and has not come to expectations of the textile industry.
“We demanded the government to refund the innovative or invisible taxes to the industry through export refunds but the government has not paid any heed to it. Our industry has been made costly by adding too many local taxes. We were expecting that the government will announce end to these taxes enabling us to compete with international market but unfortunately it has not been done,” he explained
“No incentive has been announced and over Rs 160 billion refund of the industry is also not being released by the government. We were also expecting that our refunds will realized in the result of the Budget 2015-16 but it is disappointing and sad that the government has not drawn any actual strategy,” he added.
Only pledges were being committed by the government to release refunds, SM Tanveer said, adding that during last budget it was promised by the Federal Minister Ishaq Dar that refunds will be released by December of last year but it was not done and now a new date has been announced by the finance minister.
Chairman All Pakistan Tajar Itihad, Khalid Pervaize said that the budget has nothing for the commoners and the rich people have been given incentives indirectly.
Lahore Chamber of Commerce and Industry (LCCI) former Vice President Aftab Ahmed Vohra said that smuggling has been damaging the genuine business and under invoicing since long but the budget has not announced any strategy in this direction.
LCCI President Ijaz A Mumtaz said that cut in markup rate on loans for exporters would encourage the export-oriented industry and it would also put positive impact on the exports.
He said that Rs 185 billion for road and infrastructure would help economic development of the country.
He said that cut in transfer and token fee of the vehicles and reduction in withholding tax was also a good initiative.
The LCCI president said that 10 percent income tax on electricity bills over Rs 75,000 would increase the cost of doing business; therefore government should withdraw this suggestion.
Ijaz A. Mumtaz said that withdrawal of FBR powers to exempt business from duties/taxes through SROs and loan on zero markup rate for solar tube-wells was a longstanding demand of the LCCI.
