KARACHI: Salim Valimuhammad, chairperson of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has welcomed the reduction in tax rates for the salaried class, though he noted that the cuts are not substantial for higher income brackets.
Also, the duty on dyes has been reduced from 16 per cent to 15 per cent, while a 5.0 per cent duty has been imposed on items that were previously zero-rated.However, Valimuhammad expressed concern over the extensive powers granted to tax authorities under the new budget, warning that such measures could negatively affect the business community.
He acknowledged that while the budget includes some positive steps, it remains flawed in certain areas.Commenting on the Export Facilitation Scheme (EFS), the PCDMA chief was critical and argued that it should have been entirely withdrawn, citing widespread misuse.
He explained that the scheme had primarily benefited major cotton and related sectors, and that with the imposition of duties and an 18 per cent tax, curbing its abuse would remain difficult.
Valimuhammad described the budget as a modest improvement over previous ones but called for greater clarity on pending regulations. He also cautioned against the potential consequences of enhanced enforcement powers for tax authorities on the broader business environment.
