ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious reservations over federal budget 2016-17.
While giving his views on the budget, FPCCI President Abdul Rauf Alam criticised some of the measures, saying that the issues would be taken up with the government before the approval of the budget. He said that a team has been formed to negotiate with the government in this regard. He said that the budget will improve agriculture and export sectors as well as the law and order due to enhanced allocations for the defence sector, but at the same time it has triggered reservations among some sections of the business community.
Abdul Rauf Alam lauded the decision of the government to pay refunds and demanded that entire refunds must be paid during the months of July and August. He announced unconditional support for the decision of the government to tighten noose against non-filers, broaden tax base and demanded reduced reliance on withholding agents. He said that agriculture has been focused and the prices of Urea in Pakistan now match with that of India while the agri loan target of Rs 700 billion coupled with two percent reduction in mark-up will support the dwindling sector which has compromised GDP by 0.5 percent.
The rise in salaries and pensions and hike of Rs 1,000 in minimum wage of workers is insufficient, he said, adding that five sectors have been allowed zero rating but the second largest export sector of rice should be allowed zero rating as other five sectors and that small business and cottage have been ignored. Abdul Rauf Alam said that duty on two thousand items have been reduced which will reduce cost of doing business. He lauded the decision to give tax exemption for setting up new industry during next three years and demanded zero duty and tax on import of plants and machinery.
He said imposition of Rs 50 FED on a cement bag will hurt housing sector and increase cost of CPEC and other mega projects. He also called for reversing ten percent WHT on transfer of property in five years. He demanded to reverse the customs duty enhanced on the import of steel billet, asked for preferring direct taxation over indirect mode of taxation which will impede is growth of filers. The President FPCCI lauded abolishing duties on import of laptops and computers to curb smuggling and decision to reverse remaining concessionary SROs.
At the occasion, President ICCI Atif Ikram Sheikh said incentive to ghee mills in some areas is not advisable and that taxes on this sector should be reduced keeping in view the prevalent malnutrition. VPs of FPCCI Zafar Bakhtwari and Riaz Khattak, Chairman of UBG Iftikhar Malik, Secretary General UBG Zubair Tufail, SVP Abad Arif Jeewa, Shakil Dhingra, President and former presidents of ICCI including Atif Ikram Sheikh, Khalid Jaweed, Tariq Sadiq, Ijaz Abbasi, Kamran Abbasi, Malik Sohail and others were also present on the occasion.
