Federal budget 2018-19 to be business-friendly: minister

FAISALABAD: State Minister for Finance Rana Muhammad Afzal Khan on Saturday said the federal budget 2018-19 will be business-friendly and utmost efforts would be made to make it tax free.

He was addressing a function at the Faisalabad Chamber of Commerce and Industry (FCCI) in which draft of budget proposals were presented to him.

The minister said that no doubt the government was facing multiple challenges but our effort was to continue the existing pace of economic.

Underlining the importance of industrial sector, he said the government fully understood that progress and prosperity was directly linked with industrial growth and he would visit Karachi, Sukkhar, Peshawar and other cities to discuss matters of mutual interest with all sectors of economy. He said the government would formulate the budget without any ad hoc or short term benefits.

"We are hoping to return in the government in coming general elections and hence we don't want to create any economic problems for the next government", he said and added that political governments always prefer to avoid new taxation.

"We will try our best to enhance revenue by improving the existing tax recovery system in the country", he added.

Regarding attitude of the tax collectors, Rana Muhammad Afzal said that being a businessman, he himself feel that the attitude of tax collectors should be improved and in this connection a systematic effort would be made by restricting direct contact between the tax payers and tax collectors.

He said the FBR would be requested to bring each and every person with taxable income into the tax net respectfully. He added the FCCI should also cooperate in this drive and request its members to pay taxes voluntarily if they fall within the requisite slab of income tax.

He said that it will indirectly benefit our business community as it will help them to maintain book of accounts which are prerequisite to launch joint ventures with their counterpart by submitting their balance sheet. He quoted his recent visit to China to attend a road show and told that five to six hundred Chinese companies participated in it.

He said that the government had also credit to clearly differentiate between filers and non-filers in order to streamline the tax system.

Regarding tax rate, he disclosed that the government was actively considering a proposal to increase the minimum tax slab to Rs six to eight lac.

Regarding corporate tax, he said that its ratio could also be trimmed from 30 to 20 per cent and told that it could be further reduced to 15 per cent if the kitty was able to absorb this decrease.

He also mentioned his visit to Italy and said during this visit three MoUs were signed under which Institute of Marble Cutting and Polishing, Institute of Leather and Shoes, Institute of Fashion and Design and Institute of Knitwear would be established.

He said that he will try his best that Institute of Fashion should be housed in National Textile University. He told that commercial attaches are being deputed in 58 countries which will give a quantum jump to our exports.

Earlier, in his welcome address, FCCI President Shabbir Hussain Chawla underlined the need of revenue collection for smooth growth of national economy and said that basically taxes were by-products of businesses and the government must facilitate businessmen to increase its revenue.

Later, Khalid Habib Sheikh chairman APTPMA handed over draft budget proposals to Rana Muhammad Afzal Khan while former President Sheikh Abdul Qayyum presented him FCCI shield.