KARACHI: The representatives of industrial sector, chambers and trade associations of the country have asked the government to give greater emphasis on promotion of power generation avenues in the next budget 2017-18.
Office-bearers and representatives of Pakistan Tanners Association, Pakistan Apparel Forum, Pakistan Yarn Merchants Association, All Pakistan Marble Mining, Processing, Industry and Exporters Association, Surgical Instruments Manufacturing Association Pakistan, All Pakistan Business Forum, Karachi and Lahore chambers, carpet and sport goods in their respective budget proposals have already suggested finance managers of the government that liberal investment policy, infrastructure development, broadening of tax base and creating jobs through industrialisation.
And more trade and business people urged government to at least allocate 12 percent to 15 percent of the total budget allocated for hydro power projects. Reliance on costly thermal power has been jacking up the cost of production and the import bill as well.
Tackling the energy shortages lies in maximum funds to be allocated for construction of dams or water reservoirs, tapping of Thar Coal and completion of Iran-Pakistan gas pipeline.
They were of the view that country is in dire need of an urgent shift in its energy-mix in favour of hydro power and local fuels.
Agha Saiddain and Anjum Zafar from tanning sector, Ghulam Rabbani from yarn sector, Rana Abdul Sattar of cotton sector, Sanaullah Khan from onyx sector, Ibrahim Qureshi from business forum, Jawed Bilwani from apparel sector, Shakeel Ahmad from agriculture sector besides members of different trade bodies have urged the government to reduce sales tax to single digit and also cut corporate tax to make the upcoming budget business-friendly. The budget managers should announce measures to incentivise investors, broaden the tax net through documentation of economy, simplify tax system and reorganise the Federal Board of Revenue.
Promoting foreign direct investment, increasing the share of direct taxes in revenue and lowering the slab of indirect taxes would help achieve key economic targets set for fiscal year budget 2017-18.
The sales tax slab should immediately be curtailed in order to reduce inflationary pressures.
Measures promoting foreign direct investment, increasing the share of direct taxes and slashing the slab of indirect levies should top the budget, they hoped.
Agha Saddain said rising risk perception about investing into Pakistan has been hitting hard the FDI that fell sharply in recent months and needed to be tackled through a comprehensive policy approach by involving business community.
