Ikhtiar Baig congratulates PM on amnesty scheme

KARACHI: Dr. Mirza Ikhtiar Baig, SVP FPCCI, congratulated Prime Minister Imran Khan and his economic team for the successful amnesty scheme.

He said the registration of more than 100,000 non-filers in the scheme reflects a change of mindset. He suggested to the FBR not to harass the new filers and encourage non-filers looking forward to join the tax net.

He said there are rumors that IMF has demanded a further increase in the discount rate which will not help establish any new industry at 15% to 16% markup preventing job creation.

Baig said, on withdrawal of zero rated facilities from five export oriented sectors, it was assured by Finance Advisor and Chairman FBR that the sale tax refund to the exporters would be made at the time of receiving export proceeds in the bank with auto generation of refund vouchers by the banks, but no such mechanism has been announced as yet and the exporters are worried over the delay and non payment of the refunds like in the past. He said old pending sale tax, income tax, DLTL, drawbacks, exporters refunds amounting to Rs. 200 billion were not returned in the last many years which seriously affected the liquidity of the exporters and they can’t afford additional borrowing at the current 15% markup. Dr. Baig proposed allowing transfer of plots and properties on the actual market value at reduced tax rates of three per cent to stop black money.

He said the commercial exporters of textile should also be entitled to get rebate like manufacturers under Prime Minister’s trade enhancement package for promotion of exports under textile policy. Ikhtiar also called for resolving the pending issue of GIDC to avoid uncertainty.

He said the FPCCI appreciates government incentives for the economic reforms to discipline the economy but it should be done in a gradual manner as no one can clean the mess of the last many decades in one year as it will disturb the industry. The FPCCI as policy supports government on documentation of economy.