LAHORE: Cumbersome customs procedures, inefficient port operations, inadequate infrastructure, excessive document requirements and extra-ordinary delays in release of refunds all lead to additional costs and delays for exporters.
These views were expressed by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President & Regional Chairman Ch Arfan Yousaf the other day.
Talking to Customs Today, he expressed grave concern over the excessive use of Section 38-B and withholding tax on bank transactions by Federal Board of Revenue (FBR) and urged the prime minister to intervene into the matter.
He said that section 38-B is being misused badly against the business community that is one of the major reasons of low tax-to-GDP ratio. He said that FBR should stop harassing filers as it discourages businesses to come into the tax net.
Talking about ports and customs he said that excessive document requirements, burdensome customs procedures, inefficient port operations and inadequate infrastructure and extra-ordinary delays in release of refunds all lead to additional costs and delays for exporters.
Arfan is of the opinion that the development of country economy is subject to efficiency of agricultural sector ― the agro-based commodities are traditional goods to contribute in exports of Pakistan. The value addition in this regards is primary element to enhance exportable surplus.
Discretionary powers given to FBR officials should be withdrawn immediately as FBR official use these powers for harassing business community, the regional chairman said adding that one window facilitation cell should be established for industrialization, dealing with increasing trade deficit and improving ease of doing business ranking.
Double taxation and withholding tax on banking transaction are the practices which promote undocumented economy, the regional chairman said, adding that tax amnesty scheme should also be announced for the economic growth.
“Tax refunds should be made as soon as possible to improve our exports. Tax return system should be simplified. Help desk of Punjab Revenue Authority should be established at each chamber of district.
Business representative should be included as Board of Directors of all government institutions, PBIT, TDAP, FBR and NTC,” he added.
Talking about the cost of doing business and exports finance, he said reimbursement of tax refunds and payment of funds under PM package should be top priority of the government for the promotion of exports.
The export oriented -industry is fast losing export markets in the USA and European Union due to the increased cost of doing business. He said foreign debt of Pakistan was around $ 60.9 billion in 2013, which has gone up to $85 billion by September 2017 showing an increase of over 41% during the last four years. He said the constant rise in foreign debt was the major cause of poverty.
He has strongly condemned recent increase in the prices of petroleum products and urged the government to immediately withdraw recent increase in prices of petroleum products.
Ch. Arfan Yousaf expressed serious concerns over the recent hike in the prices of petroleum products and liquefied petroleum gas (LPG), and said that this will increase the cost of production and Pakistani products will suffer in competitiveness. He said manufacturing concerns and export-oriented industries will further suffer for the decision.
“Our exports already had a declining trend due to the high cost of business while increase in fuel prices will further disturbs the situation,” he said adding that FPCCI is demanding immediate withdrawal of increase in fuel prices.
He said that repeated increase in oil prices in recent past has badly eroded Pakistan’s competitiveness due to which the country is losing attraction for investment and this situation would further destabilize the economy.
