LAHORE: Lahore Chamber of Commerce & Industry president Sheikh Muhammad Arshad has said that it is the most opportune time to revamp taxation system that has failed the produce desired results. Economic growth can only be achieved by reducing rate and number of taxes. He said that business community is in deep trouble due to so many irritants including smuggling, under invoicing, non-professional attitude of FBR, undue notices and other taxation issues. He said that if the situation remains the same, it would cause irreparable loss to the industrial sector.
In a statement issued here, the LCCI president urged the parliamentarians to align the fundamental framework of the Federal Budget 2016-17 according to the economic challenges and to enable trade and industrial sector defy with the competitors at global level.
He said that reins of economy are in the hands of parliamentarians as Federal Budget 2016-17 is under debate in National Assembly and they can suggest corrective measures. He said that private sector has the ability and capacity to bring the country at par with developed nations of the world. He said that business community would not be able to make inroads if their genuine reservations about Federal Budget 2016-17 are not addressed.
He said that government should share its plan with the business community that how huge budgetary deficit would be met. He said that huge borrowing had already occurred massive loss to the economy as huge amount is being spent on debt servicing. He said that if government borrows more to overcome budget deficit, it would add to the economic worries of the country.
He said that withholding tax on banking transactions, bank accounts attachment, misuse of discretionary powers of the FBR officials and smuggling are the burning issues being faced by the business community. He said that business community was expecting measures in this regard but no clear announcements have been made in this regard. He said that these issues are not only hampering the growth of business sector but also keeping people away from the tax net. He said that Parliamentarians should bring these issues under discussion particularly and remove these hitches which are coming in the way of smooth running of the businesses.
He said that the net worth of foreign direct investment in Pakistan is too low. In 2014, it stood at dollar 1700 million but in 2015 it contracted to dollar 852 million. The Pakistan exports remained stagnant at dollar 25 billion for almost three years. He said that because of below the target exports and huge imports trade deficit will further increase which will put extra pressure on already negative balance of payments. It will only lead to deficit financing and more loans that is not in the favor of economy at all.
The LCCI president hoped that all aspect of the Federal Budget 2016-17 would be came under discussion in the National Assembly and corrective measures would be taken in the larger interest of the trade, industry and economy.
