Islamabad : The Islamabad Chamber of Commerce and Industry (ICCI) giving its reaction to the Federal Budget 2021-22 termed it as a balanced budget expecting to lead the economy in the right direction to achieve better growth and expansion targets.
President ICCI, Sardar Yasir Ilyas Khan said the government has accepted many proposals of the major chambers of commerce and industry.
He said the progress and prosperity of the country was dependent on promoting industrialization, adding that the government has reduced customs and regulatory duties on the import of raw materials and goods for many industries which is an encouraging step, said a news release.
He said the reduction in tax liability by 25 percent for women entrepreneurs was a welcome move and urged that the government to considered similar relief for Small and Medium Enterprises (SMEs).
Yasir Ilyas Khan lauded the reintroduction of the self-assessment scheme for taxpayers as it would give them more confidence and help improve tax revenue.
He said deletion of 12 withholding taxes in the budget was a positive move as these taxes were putting an extra burden on the taxpayers.
However, he urged the government to introduce a two percent fixed tax scheme for traders to realize the actual tax potential of the country and promote a documented economy.
He urged that the government take the business community on board and address all their concerns for the installation of an additional 0.5 million POS on businesses in the country.
He said high power tariffs in Pakistan were a major cause of the high cost of business and suggested reducing power tariffs in the budget to make the industry more competitive for exports.
He hoped that this budget would be helpful in further accelerating the pace of economic activities in the country.
Mian Akram Farid, Chairman, Founder Group termed the overall budget as positive.
However, he urged the government to announce few incentives to attract more Foreign Direct Investment in the country.
He said Pakistan has the potential to increase its Information Technology exports up to USD 8-10 billion for which more concessions for the IT industry and e-commerce were need of the hour.
He said PM''s construction package has stimulated the economic activity in this sector and urged the government to announce similar kinds of packages for all industries leading the economy towards a fast track growth rate.
He said SMEs were playing a vital role in the economic development and suggested announcing cheap credit schemes for them in the budget.
He said only 300 firms were contributing 70 percent of tax revenue and urged the government to strive for broadening the tax base through a fixed tax regime.
He also stressed the need to focus on skilled development of people to enhance manpower exports.
Senior Vice President ICCI Fatima Azim and another official Abdul Rehman Khan appreciated the reduction in capital gain tax from 15 percent to 12.5 percent.
They also stated that relief in FED and sales taxes on locally manufactured 850cc cars and electric vehicles were positive steps, adding, these measures would boost investment in the stock market and promote automobile industry. Fatima Azim further urged the government to provide easy credit facilities to women entrepreneurs to attract more women towards the business sector.