Karachi, June 14, 2016 (PPI-OT):S M Muneer, Chief Executive of Trade Development Authority of Pakistan (TDAP), on Tuesday demanded of the government to give business community relief in taxation because the revenue targets are being met. He also demanded to totally abolish sales tax on import of plant machinery.
He was addressing Post-Budget Analysis as the chief guest held at the Federation House under the auspices of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The program was organized by Sahabzadi Mahin Khan, Chairperson FPCCI standing on Press and Media and was attended by Acting President FPCCI Sheikh Khalid Tawab, vice presidents Hanif Gohar and Zulfiqar Sheikh, Chief Commissioner Large Taxpayer Unit Ayaz Mehmood, Zubair Tufail- chairman FPCCI standing committee on FBR, Shabbar Zaidi, Dr. Mirza Ikhtiar Baig, Senator Haseeb Khan, Col (retd) Mukhtar Ahmed Butt, Shahid Hussain, Asif Iqbal, Nusrat Mirza and a large number of members of the FPCCI.
S M Muneer said that Budget Anomalies committee of the FPCCI has been established and its first-ever meeting will be held on Wednesday at the Federation House and compile recommendations to be presented in a meeting with Finance Minister. Appreciating the present government role in economic growth, he said that credit goes to Finance Minister Ishaq Dar to put the economy of the country on the right path.
The exports growth is slowed down due to recession in the world, he said adding that Pakistan’s exports is reduced by 14 percent, India’s exports are also gone down by 14 percent while China’s exports have witnessed 22 percent reduction. However, Pakistani exporters are doing well despite lacking of infrastructural facilities.
Speaking on the occasion, Acting President FPCCI Sheikh Khalid Tawab said that the Finance Minister has assured to pay exports refunds to exporters but no money has been allocated in coming budget for payment of refunds, which are almost Rs 300 billion. He demanded to allocate funds in the budget for exports refunds. He opposed sales tax on import of plant machinery and said that these machineries are meant for enhancing production, which will ultimately contribute to the economic growth of the country as such these machineries be allowed zero-rate. He also demanded to enhance turn over tax limit.
Addressing the meeting, Chief Commissioner Large Taxpayer Unit (LTU) Ayaz Mehmood said that it is matter of proud that LTU Karachi is collecting 40 percent taxes of total tax collections of the country and now this LTU will have another feather in its cap by crossing mark of Rs 1000 billion tax collection. He said that the country will get rid of debt financing once the Tax to GDP ratio reaches the mark of 18 percent.
Earlier, welcoming distinguished guests, VP FPCCI Hanif Gohar said that despite scarcity of electricity, water, gas and other infrastructural facilities exporters are competing in the international markets. He lamented that the government is not paying refunds to exporters; however, it is welcoming step that the Finance Minister has announced in his budget speech for paying refunds to exporters.
Vehemently rejecting amendment to section 68 (2) of the Income Tax Ordinance 2001, envisaging discretionary powers to Income Tax officials for assessing valuation of property, he said that this act will not only open new vistas for corruption but also over burden courts as aggrieved parties will have no choice but to knock the doors of the courts. He demanded of the government to bring down cement prices at par with our neighbouring countries, withdraw proposed Federal Excise Duty on cement and 15 percent Regulatory Duty on steel import for the growth of construction industries.
Taking part in the discussion, renowned Chartered Accountant Shabbar Zaidi suggested announcing one time amnesty for the people involved in Panama Leaks against 5 percent tax. Former VP FPCCI Zubair Tufail also shed light on important budgetary measures and represented views of all speakers. Other speaker Col (retd) Mukhtar Ahmed Butt, Nusrat Mirza, Dr Mirza Ikhtiar Baig and Asif Iqbal also highlighted various budgetary measures.
For more information, contact:
M. A. Lodhi
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: +92-21-35873691, 93-94