FAISALABAD: Faisalabad Chamber of Commerce & Industry (FCCI) has given mixed reaction over the Federal Budget 2020-21.
Rana Sikandar Azam Khan, President FCCI along with its team witnessed the budget speech direct from the National Assembly.
Later giving its immediate reaction, he said that in budget formulation, recommendations of the business community had been totally ignored and preference had been given of the IMF and other international donor agencies.
Quoting two recent meetings with All Pakistan Chamber's Presidents organised by Rawalpindi CCI and Islamabad CCI, he said that 57 Chambers had participated in those meetings and presented consensus recommendations but no heed had been paid to their proposals.
He said entire business community was convinced that production of ID card for purchase up to Rs 50,000 should be withdrawn but it had not been accepted. He further said that SBP policy rate is eight percent but it became 15 percent after including banking spread and with that high mark-up rate, no profitable business was viable.
Rana Sikandar said that growth rate of developing countries was in negative due to coronavirus. "However, we expect that growth rate of China will be one percent. In this critical situation direct relief is imperative for the trade and industry but again this proposal has also been rejected."
He said business community played a major role in tax collection but their demands had been ignored. He clarified that only business community was paying its due share of taxes and was ready to discharge their monetary duty but "we have been totally ignored in this Federal Budget." He said after peak of Corona, global markets were now reopening, adding "we have sufficient export orders. But instead of facilitating the industrial sector, government has allowed duty free import of food supplements for children." He stressed the need for ease of doing business and cutting down the cost of production. "In Pakistan, 80% electricity was generated by thermal power houses," he said, adding the oil prices had come to the minimum during the last 20 years but no tangible relief had been passed on to the trade and industry. He expressed surprise that despite of cheaper petrol, it was unavailable in the country.
He demanded that government should now immediately and proportionately reduce the rates of electricity and gas so that industry could run with full production capacity. "It will also create maximum job opportunities for the unemployment youth," he added.
Continuing, Rana Sikandar said every Pakistani should pay tax but government had staged a drama of "filer and non-filer" to continue its corrupt practices. He said that no non-filer should be allowed to purchase house or vehicle. Similarly, complete ban should be imposed on commercial electricity and gas connections for the non-filers as they are not contributing their role in revenue generation.
"We are not satisfied with this budget as our proposals have not been incorporated in it," he said, adding the government should now concentrate on expanding the tax base instead of adding additional burden on the existing tax payers. He demanded that all commercial electricity and gas connection holders should be included in tax net or their connections should be severed immediately.
He said the government had increased budget for different sectors and that burden would be recovered from the existing tax payers.
Vice President Bilal Sheikh said that condition of providing ID card on purchase of up to Rs 50,000 had been enhanced to Rs 100,000. He also expressed satisfaction that refunds and DLTL funds had been made and now government should also take proper arrangements for the payment of income tax refunds. He clarified that the major demand of zero rating for export sectors had also been discarded.
Earlier, the business community along with journalists witnessed Budget Speech direct from the floor of national assembly through video link. Later, they also gave immediate reaction on the budget. Nadeem Allahwala, Rana Ikram Ullah, Habib Rehman and Haji Talib Hussain were also present during this meeting.
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