FPCCI terms budget public-friendly, businesses-oriented

KARACHI: Government maintained a balance between public-friendly and pro-business measures in the budget for the next fiscal year of 2018/19.

President FPCCI Ghazanfar Bilour said a number of incentives were announced to promote the country’s agriculture sector, which would help agro-based industries.

“Most of our recommendations have been incorporated in the budget,” Bilour added. “The announcement that any company could only be audited by the tax authorities only once in three years would provide relief to the businesses.”

Bilour criticised application of any tax on banking transactions. “Nowhere in the world is tax imposed on cash withdrawals,” he added.

Mazhar Ali Nasir, senior vice president of FPCCI, said it is yet to be ascertained whether the budget is an import substitution document and if it is an industrial growth-oriented budget. “It is also important to understand whether the incumbent government would continue with the measures announced in this budget.”

Nasir appreciated the announcement regarding installation of a water desalination plant in Karachi having a capacity of providing 50 million gallons/day of clean water.

“This would break the monopoly of water mafia and reduce cost of doing business for industrialists in Karachi. The new government should prioritise the completion of this project, he said.

Fawad Aijaz, patron-in-chief of Pakistan Leather Garments Manufacturers and Exporters Association said the budget did not have any incentive or relief for the exporters.

“There have been no refunds to exporters during the last four years while Miftah Ismail announced that government would start paying refunds from July 1, 2018, which means there will be no refunds for another two months,” Aijaz said.

Aijaz said exporters receive drawback of local tax and levies (DLTL) refunds from the central bank, customs duty drawback, sales tax and income tax refunds and these would be paid

in the year starting July 1, 2018.

“This budget is a death warrant for the exporters instead of providing any relief. The cost of doing business would further increase for exporters.”

Waseem Vohra, ex-president of FPCCI appreciated tax relief measures. “Gradual elimination of super tax and reduction in corporate tax to 25 percent by 2023 along with tax credit to new industry would result in expansion and provide employment opportunities.”

Irfan Sarwana, representing cosmetics industry in the chamber, said federal budget proposed several import concessions, which would largely benefit industries relying on imported inputs.