Business community has hailed the Finance Supplementary Amendment Bill, 2019 presented by Finance Minister Asad Umar and said it is, in fact, Economic Reforms Package to correct the direction of economy.
Former Chairman, Pakistan Tanners Association (PTA) and former Vice President FPCCI, Gulzar Firoz has appreciating the steps taken such as abolition of withholding tax on cash withdrawal from banks by fillers, massive duty reduction on import of raw materials for export industry, abolition of wealth tax on stocks, allowing non-fillers to buying car up to 1300 CC, agriculture loan, tax reduction, Qarz-e-Hasna for home developers, reduction of tax for small marriage lawns, carry forward of capital loss up to 3 years etc. and many other positive steps.
He, specially, thanked the finance minister for accepting long outstanding demands of the leather sector such as reduction of duty on many chemicals, abolition of duty on tannery/shoe machinery. He also welcomed abolition of duty on plant and machinery for green industry.
He also appreciated to issue negotiable instruments/promissory notes for outstanding refunds. He supported the finance minister for increasing duty on luxury items, including luxury cars and mobile phones. He said that with the above incentives the economy will get a boost and the process of industrialization will commence and export will increase.
Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli and President KCCI Junaid Esmail Makda are appreciative to Finance Minister Asad Umar for presenting the economic reforms package in which numerous recommendations given by the Karachi Chamber have been incorporated.
"We hope that the remaining recommendations will also be included in near future which would boost the economy, promote industrialization, create employment opportunities and help in bringing down the rising trade deficit", they added.
While thanking the finance minister for giving due consideration to KCCI's proposals, they said that it was a 'job well done' in which many lacunas have been removed and it clearly indicates the directional change that would help in dealing with the economic crises, bring down the cost of doing business and also ensure ease of doing business.
The measures taken have sent a positive message to the trade and industry in Pakistan which will help achieve the stated goal of creating a conducive environment for investment and improve Pakistan's ranking on EODB.
Siraj Teli and Junaid Makda said that removal of with-holding tax on cash withdrawals from bank accounts by filers has sent a positive signal to the business community in general and Small & Medium Enterprises (SMEs). in particular to conduct business without fear or apprehension which will also help to raise bank deposits while discouraging cash economy.
They opined that restoration of FTR for commercial importers is also a major step taken by the government in the supplementary finance bill which was proposed by KCCI.
This decision will prevent unnecessary audits of tax-payers who are already paying WHT at a very high rate. The measure will also support the SMEs who do not have the capacity to go through lengthy audit process. Meanwhile, Vice Chairmen BMG & Former presidents KCCI Tahir Khaliq, Zubair Motiwala, Haroon Farooki and Anjum Nisar, Senior Vice President KCCI Khurram Shahzad, Vice President Asif Sheikh Javaid, Former Senior Vice President Muhammad Ibrahim Kasumbi also welcomed reduction in customs duty on certain raw materials and appreciated the government's move to eliminate super tax on non-banking companies and the decision to maintain one percent annual reduction in corporate income tax, which would help in reducing the cost of doing business for industries.
President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain said that the mini budget presented by the government is in fact the economic policy to correct the direction of economy. The bill provides several measures of policy makers to build supporting environment for investment, trade, industry and agriculture with increased profitability for the business community.
To flourish investment in the country, Greenfield investment and industrial units in special economic zones have been exempted from income tax for the period of five years in addition to exemption from regulatory duties on import of plants and machinery.
He said that alternate energy sector has also been exempted from taxes and duties in order to promote the cheaper means of energy and investment in this very important sector.
Local and foreign investors will definitely attracted by the measures. Withholding taxes on trading in stock market has been waived off which will increase trade volumes and overall trading environment.
Urea prices have been reduced by Rs. 200 per bag while taxes on components of diesel engines being used by farmers have been abolished which will benefit the agriculture sector.
He said that small, medium and agriculture sectors have been given the incentives of easy loans as banks' tax on loans to such sectors has been reduced to 20 percent from 35 percent, however, if direct benefit to these sector would have given it would draw much better impacts in terms of increased incomes and employment. RD on approximately 150 raw materials for the local manufacturing have been reduced which will benefit the manufacturing sector.
Mian Zahid Hussain said that simplified taxation system will be introduced on test basis in Islamabad and will be spread over the country which will definitely increase the tax base if gained the trust of small traders across country.
Abolishing of withholding tax on banking transactions for filers is appreciative and encouraging for filers. Reducing tax on small marriage halls will ease the middle and lower middle classes. Increased taxes on luxury vehicles and mobiles will curb imports however will have least impact on majority. Monthly submission of withholding tax returns has changed to biannually which will provide ease to business community.
Better impacts of this bill are yet to come in coming months. Exceeding imports against exports have played an important role in current economic situation therefore, more incentives and facilities are vital for export sector, without which exports may not be increased.
President of Korangi Association of Trade & Industry (KATI) Danish Khan said that industry was demanding since along to reduce or exempt raw materials of imports of export oriented industry, which has recognized by the government.
He was of view that after a long time the federal government showed its will and dimension for stabilization of industry and business activity in the country.
Danish Khan said that a simple and steady tax submission system was announced for Islamabad, it should be extended to the entire country. President KATI further said that industry in Karachi was facing severe infrastructural issues, the government should announced a special development package for the city.
Senior Vice President KATI, Faraz-ur-Rehman applauded that measure announced to reduce income tax on bank loans for SMEs and agriculture sector and withdrawal of withholding tax on bank transactions for fillers. "In coming national budget we expect more from the government regarding lower cost of production and ease of business "he added.
Vice President KATI, Maheen Salman Muneer appreciated the announcement of issuing promissory notes to exporters, to resolve liquidity issue due to delay in returns payment. Former President FPCCI SM Muneer said that the announced measures to promote industrial production, exports and investments in country reinforced the confidence of business community. He said that PM Imran Khan promised to decrease cost of production and doing business, was made in his first speech after election victory, this package was a very positive step towards this goal.
Comments
Comments are closed.