KARACHI: Federal Minister for Finance & Revenue Shaukat Tarin has assured that the Drawback of Local Taxes & Levies (DLTL) has been extended and it will not be discontinued while the business community is going to get all its claim on time as funds for the purpose have already been allocated in the budget and the pending DLTL claims of Rs32 billion of the last fiscal year will also be settled in the next six months.
Exchanging views with the leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce & Industry (KCCI) at a meeting held here in a local hotel on Sunday, Finance Minister advised KCCI to visit Islamabad in order to discuss their reservations about the new Ordinance, besides resolving all issues on the spot by arranging meetings with Prime Minister Imran Khan, Advisor Commerce & Investment Razak Dawood, Federal Minister for Energy Hammad Azhar and Federal Minister for Industries & Production Makhdoom Khusro Bakhtiar. “We will instantly give deadlines for all the pending policies as PM is determined to revive business, industrial and agricultural activities”, he added.
Chairman Businessmen Group & Former President KCCI Zubair Motiwala, Vice Chairmen BMG Tahir Khaliq, Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, Former Vice President Muhammad Idrees, Former Presidents, KCCI Managing Committee Members along with prominent business figures attended the meeting.
Shaukat Tarin categorically stated that victimization was definitely not the purpose of the Ordinance which was purely for non-filers and those under-filers who file zero tax. It was a matter of concerns that out of a total of 2.9 million filers, one million are those who file tax returns and show zero taxable income. “We are intending to take help of artificial intelligence would examine electricity, gas, telephone bills along with banking transaction activities and other details of such filers and classify them as under-filers who will be asked to submit their taxes through a third party.
He said that the government was serious towards resolving issues in order to ensure sustainable economic growth at the rate of 5 percent which was the basic reason for enhancing the PSDP and reducing prices of raw materials so that the industry could stand on its feet. “Good news is that we are growing as all the indicators are showing improvements and we are growing faster than what was being expected.”, he said, “However, the import bill is going to touch US$19 billion this year as compared to US$13 billion of last year mainly due to rising petroleum prices and other commodities which we have to absorb.”
He said that the government’s target was to improve the pace of exports from the existing 8 percent to 18 percent in the next few years while the narrow industrial base was also being expanded through incentivization. Incentives have been given to construction sector, pharmaceutical sector, spare parts manufacturers. “Anyone with economy of scale production is being incentivized to enable them to go for exports as well. We have to improve the exports and FDI by facilitating the local investors through Board of Investment. If our local investors will not be happy, how are we going to attract foreign investors.”
He was of the opinion that inflation was not the issue of Pakistan alone as many countries around the world including regional countries were also facing this issue which was due to disruption in production all around the world due to covid along with logistics disruptions and exorbitant container chargers. “Prices of Palm oil, wheat and rice have been rising globally since 2018. We cannot isolate ourselves from international commodities prices as we are linked with them.”
He also assured to convey KCCI’s concerns over dilapidated state of Karachi’s infrastructure to Prime Minister with a request to come up with some kind of a direct action by the Federal Government to improve the poor state of Karachi’s infrastructure.
