KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded intervention of the government for not including its recommendations in the budget for 2021/22.
Addressing a press conference Wednesday, FPCCI Acting President Nasir Khan said the government had not incorporated practical, business-friendly and growth-promoting proposals of FPCCI in the budget.
“It was gross negligence on the government's part to ignore the apex representative body of Pakistan’s business, industrial and trade community,” he said.
Khan also criticised the Section 203A of the budget which empowers and expands the discretionary powers of FBR. He added that it would only result in an increase in corruption and harassment. Although Section 203A has been amended through introduction of slabs, powers to arrest and prosecute will create a fearful and discouraging environment for SMEs.
Khan said Section 203A is equivalent to National Accountability Bureau’s law and provisions should be added to make FBR accountable, if it cannot establish any corruption or tax evasion. This Section 203A also violates basic rights and the honourable Supreme Court should intervene to protect the businessmen of the country.
FPCCI representative said a blanket exemption for federal excise duty has been given to tribal areas without surveying and quantifying the genuine needs and total demand of their population. This will render industries in adjacent regions and all over the country uncompetitive in comparison to those industrial units which are exempt from FED.
Khan said there is a strong possibility that industrial units may exploit the FED exemption and utilise it to produce for regions other than tribal areas. There must be a strict mechanism to avoid misuse of the FED exemption and subsequent prosecution.
Khan said FPCCI sent its recommendations on tax system reforms and simplification of tax rates to the Prime Minister and he instructed FBR to have a consultative process with FPCCI, but FBR did not start that process. He also mentioned that Shaukat Tarin promised that the budget would not be made without consulting FPCCI, but that promise was also not kept. He said corporate courts should be established in the country to counter and balance the weak policies of the successive governments and ensure protection to SMEs. Zakaria Usman, convener of the Budget Advisory Council of FPCCI, said the government should ensure consistency of policies to encourage investment in the country.
