Karachi, June 12, 2013 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) appreciated the increase in tax holiday period from 5 years to 10 years for Special Economic Zones (SEZ), the exemption of import duties on alternate energy systems and reduction of taxes from 35 to 30% and said these are very positive steps and thanked the finance minister (FM) Ishaq Dar for accepting the demands of the union in a talk show with Dr Salman Shah as host on a local television channel immediately after the budget.
President UNISAME Zulfikar Thaver said we had proposed 0% duty on alternate energy devices and enhancing the scope of SEZ and streamlining the Federal Board of Revenue (FBR) and are happy that the FM has advised broadening the tax net, simplifying the procedures and increasing efficiency for better tax collection.
He however stated that since the budget was made in a very short period certain very important requirements of the sector have been overlooked and the union committee will be seeking time with the FM to emphasize on the importance of their inclusion. The union is positive that the FM will accommodate the sector.
He said banking, insurance, leasing and logistics are the pillars and the SMEs desire that these institutions be strengthened to bring about fast track uplift of the SMEs for rapid growth of the economy.
The SMEs need land at concession, reduced import duties on raw and packing material, tariff protection for local industries, finance at affordable mark up on soft terms and incentives for innovative industries. He expressed confidence that the demands will me met in due course of time as the government is very keen to facilitate the sector and promote it to make it competitive.
He said the mark up rate for SME finance must be in single digit, comprehensive insurance covering country default for SME exporters and domestic insurance for entrepreneur default, leasing under pay as you earn scheme and logistic efficient services including warehousing, collateral management and freight payment facilities be provided to the SMEs.
The union also stressed the need for venture capital, SME support fund and a specific SME bank.
The union said the Small and Medium Enterprises Development Authority (SMEDA) was conceived by prime minister (PM) Nawaz Sharif himself and that time the organizations voice was heard. It is hoped that the PM will once again take special interest in the sector which is the majority sector and the engine of growth.
The budget has not addressed the SME issues of finance on cash flow basis, the establishment of the Exim Bank, the increase in law enforcing agencies personnel for combating crime and providing them scientific systems for curbing crime in industrial areas.
For more information, Contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Phones: + 92 35884225 and 6
Cell: + 92 300 8245307 and + 92 321 8245307
Fax: + 92 35380642