Cut in duty on raw materials termed encouraging step

Exporters, traders and industrialists have termed in unanimity the uniformity in sales tax and reduction in duty on various industrial raw materials as encouraging steps.
The majority of them were of the view that reduction in sales tax and import duty would make Pakistan's products competitive in the world market besides lowering down cost of doing business.
Mian Riaz, an Islamabad-based exporter, said high sales tax and duties were two major reasons of making Pakistani product non-competitive in the world market and reduction in these two areas would remove this handicap and lessen the difficulty of Pakistani exporters.
He congratulated the Finance Minister Shaukat Aziz and other members of his team for presenting an incentives-packed budget for 2004-05. Mian Riaz said the incentives announced in the budget would improve the buying power of the public in general and hence increase economic activities in the country.
He opined that the increase in salary, minimum income tax limit and reduction in power tariff as good decisions to provide relief to the masses.
Javed Kiyani of Pakistan Sugar Mills Association (PSMA) in his comments on budget said, "I personally believe that the government has done a good job by presenting tax-free budget for 2004-05. He viewed that measures introduced in the budget to provide relief would work as catalyst to expedite process of progress and prosperity of the country.
Kiyani also appreciated the government for introducing uniform sales tax of 15 percent and called it as a revolutionary step. He was of the view that uniform sales tax would cut down prices of all items and benefit everybody.
Javed also appreciated reduction of duty on various industrial items and hoped that it would make Pakistani products competitive in the international market. He wanted more pro-active role from the private sector to get maximum benefit of the government generous policies.
The Senior Vice Chairman Pakistan Vanaspati Manufacturers Association, Shaikh Ikram appreciated various announcement made in the budget such as imposition of tax on import of palm oil at the rate of 15 percent at import stage, which he claimed would remove anomaly in taxes between Fata/Pata ghee units, but he was critical of special favour granted in the budget to Avian Fat Industry of Karachi.
The PVMA SVP argued that permission to Avian Industries to import crude oil at less duty is unjustified which would create another anomaly. He demanded reversal of special concession to the said industrial unit to provide level playing field to all stakeholders.