Chambers ask to remove anti-business budget clauses

LAHORE: Chambers of commerce and industry from different parts of the country have asked to withdraw anti-business clauses from budget 2021-22 at a two-day post-budget convention on Thursday.

The convention, attended by 25 chambers, was organised by the Lahore Chamber of Commerce and Industry (LCCI).

In a joint statement, the chambers demanded that a formal announcement and confirmation should be made by the government to withdraw the proposal of adding clause 203(A) in the income tax ordinance.

They also asked to withdraw the proposal of imposing exorbitant fines on the importers under section (28) 156 of the Finance Bill 2021, if they for any reason were not able to complete the paperwork for redemption of their shipments.

They said that the steep increase in taxation target in Federal Budget 2021-22 should be met solely by expanding the tax base. “In addition to the sales tax refunds, income tax refunds should also be paid through the new promised centralised automated refund system,” the statement said.

Participants said energy tariff for all sectors of the economy should be capped at 7.5 US cents per unit; SMEs should be provided interest free credit without collateral; they urged the budget to allocate funds for establishing state of the art testing labs on the outskirts of all major cities. The convention also urged the government to allow commercial importers to import against advance payments up to $20,000. The three percent further tax on supplies through unregistered persons should be abolished, they demanded.

Tax exemptions for industries in Federal/Provincial Administered Tribal Areas (FATA/PATA) should be reviewed for their misuse of these exemptions. “Chambers should be exempt from income tax. The collection of 67 percent withholding tax through the business community should be stopped.”