KARACHI: The business community, particularly the patron-in-chief of Korangi Association of Trade and Industry (KATI), SM Muneer, KATI President Rashid Ahmed Siddiqui and Senator Abdul Haseeb Khan, has welcomed the measures taken by the government in the Federal Budget 2015/2016 to boost the economy, especially the withdrawal of the powers of the Federal Board of Revenue (FBR) to issue SROs.
While commenting on the budget speech by Finance Minister Ishaq Dar, SM Muneer said that by taking powers from the FBR and entrusting the same to arliament was a big success of the democratic government.
Muneer said that many discretionary decisions taken by the FBR during the past had created distortion in the taxation system resulting in discouraging taxpayers to get registered in the tax net. Further it was resulted in burden to existing taxpayers.
He said that the decision to clear outstanding sales tax refund by August 2015 was another positive decision for the business community as it would help in redressal of liquidation of the problems.
President KATI Rashid Ahmed Siddiqui said that there are many other issues that were announced in the budget would help in making growth oriented country and investment friendly. He said that tax holiday given to agriculture sector would attract investment besides promote supply chain.
Similarly, the incentive given to energy sector was need of the hour as many investors were reluctant due to high cost, he added.
He also welcomed the incentives given to construction sector and urged the government to speed up low cost housing schemes for lower middle class people.
He said that the government should think of imposing tax on agriculture income, which was out of the tax system for the past many years. He said that increasing the cost for non-filers would not result in broadening of tax base. The government should apprehend those tax evaders instead giving them amnesty at certain tax rates.
Rashid further said that the reducing maximum customs tariff was need of the time as Pakistan is member of WTO. He said that the reduction of customs tariff from 25 percent to 20 percent would cost of imports on many raw material.
Further, he added that the reducing the number of duty slabs from six to five percent would also be a comfort zone for business community. Rashid, however, said that the elimination of one percent slab and converting it into two percent would increase the cost of those commodities that were assessed under minimum slab.
Senator Abdul Haseeb Khan said that there are harsh measures in the budget, which would result in anti-business. He said that the association was studying on the budget recommendations given by the finance minister to the parliament for final approval.
