FPCCI berates ignorance in budget anomalies committee

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed disappointment over the government ignoring the apex trade body’s representation in the technical committee formed to remove anomalies in the budget 2021/22, it was learnt on Thursday.

“Breaking norms and traditions, president of FPCCI or his nominee has not been given chairmanship of the government budget anomalies and technical committee and the apex body has been completely ignored in the technical committee,” Nasir Hyatt, president of FPCCI said in a letter to the Prime Minister Imran Khan.

“Historically, the FPCCI has always helped the government to finalise the budget through addressing most of the anomalies and contradictions.”

FPCCI opposed inclusion of practicing tax lawyers and consultants in the technical subcommittee to rule out conflict of interest and ensure neutrality.

Hyatt blamed the Federal Board of Revenue (FBR) for anti-business and anti-growth income tax statues in the federal budget 2021/22, through which it has sought to enhance its discretionary powers.

In February, the FPCCI proposed simplification of tax system and reduction in tax rates to the Prime Minister who directed the FBR to look into the recommendations.

“But, unfortunately, FPCCI’s recommendations on tax reforms were not incorporated in the budget,” Hyatt said.

FPCCI demanded separation of tax judicial system from tax collecting machinery to make it comply with the constitution.

“This best practice recommendation was also overlooked. This provision must be incorporated in the final draft of the budget,” Hyatt said in the letter.

The trade body is also concerned about non-withdrawal of CNIC condition on sale, which continues to hinder business and trade activities and growth within the country.

Tax policy unit under the ministry of finance and revenue should formulate the taxation system in the budget and sectoral strengths, weaknesses and needs should be properly analyzed before imposing any form of taxation by tax policy unit.

“FPCCI firmly believes that the current budget, proposed and manipulated by the FBR, is strictly conventional in nature and does not provide relief to businesses and doesn’t promote economic growth,” Hyatt said. Various industries and sectors are compelled to spend millions of their hard-earned funds to advertise in print media and make their voice heard.”

According to the FPCCI’s analysis, the proposed budget is fill of anomalies and contradictions. “It should be revised in consultation with the business community before being finalised and approved.”