April 17, 2019: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and United Business Group (UBG) Wednesday jointly presented a set of 40 pre-budget proposals to Finance Minister Asad Umar.
They sought special incentives package to accelerate the pace of economic activities besides demanding curtail in discretionary power of tax collectors in addition to relief in taxation, duties and income tax as well as broadening tax base on top priority.
FPCCI President Engineer Daroo Khan Achakzai while unfolding the salient features of proposals said that FPCCI and UBG suggested the government to revamp taxation system on modern line for accommodating the business community.
“The objectives of FPCCI budget proposals are revamping tax system, documentation of economy, employment generation through industrialization, promoting a responsive and equitable tax system, infrastructure development and trickled down effect of the fiscal space to the grassroots level.
He urged the government for reducing the sales tax rate gradually from current 17 percent to single digit, to abolish all duty and taxes on the imports of all machinery, to reduce further tax on unregistered persons from three percent to one percent and imposition of taxes on final goods.
He proposed that customs duties on all raw materials should be low or zero. The government must eliminate regulatory duties and additional customs duty on raw materials so that the local industry could compete with the smuggled items and mitigate the effect of low tariff free trade agreements.
He said before giving final shape to proposals, all affiliated chambers, trade bodies, associations and 20 members high level core committee of United Business Committee headed by its Central Chairman Iftikhar Ali Malik were taken into confidence.
Iftikhar Ali Malik on this occasion said that the private sector of the country wants to supplement the government’s efforts aimed at economic revival of the country.
He said that joint proposals would help make budget document business-friendly, which would ultimately result in robust export-led growth.
He said that government was presently facing shortage of tax revenue and projected that economic growth rate may be declined to 3.7 percent which may enhance unemployment rate and poverty in the country.
Around 1.2 million people pay taxes in the country while the number of traders paying tax on electricity bills surpasses seven million, this gap can be bridged through sincere efforts backed by the government,” he added.
The business community will continue to support the government and repose confidence in the leadership of Prime Minister Imran Khan by taken into confidence on all important policy framing process to make then practically viable.
Iftikhar Malik suggested that government should use the data of domestic and international travelers for identifying potential tax payers and bringing them into tax net. He underlined the need of promotion of SMEs culture in the country.