LAHORE : 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 Federal Finance Minister
Asad Umar seeking special package of incentives to accelerate the pace of
economic activities besides demanding curtailing discretionaries 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 unfolding the salient
features of proposals to media here Wednesday , he said that FPCCI and UBG
suggested the government to revamp taxation system on modern line to
accommodate the business community. “The objectives of FPCCI budget
proposals are revamping taxation system, documentation of economy,
employment generation through industrialization, promoting a responsive and
equitable taxation system, infrastructure development and trickledown
effect of the fiscal space to the grass root level,” adding he said the
government should reduce 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 person 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.
About current economic situation, Engr. Daroo Khan Achakzai President FPCCI
showed his serious concern over the rising policy rate, increase in
petroleum product prices, decline in foreign investment and devaluation of
Pakistan Rupees.
