Economic well-being: 'government should take steps in consultation with stakeholders'

Challenges always bring opportunities and give economies a chance to grow therefore we should see the things positively and the government should take steps in consultation with the stakeholders for economic wellbeing.
While reacting over quarterly report of the State Bank of Pakistan on Wednesday, President Lahore Chamber of Commerce and Industry (LCCI) Almas Hyder said that all economic issues can be controlled if government focuses on some major areas. The pending refunds are causing liquidity crunch for the industrial sector. The government took a good decision of issuing promissory note for payment of refunds but its benefit should be extended to all the other sectors in addition to five zero rated sectors.
He said regulatory duties on all the raw materials lines should be eliminated to reduce the cost of doing business and making manufacturing competitive. He said that the exemption from the payment of sales tax on imported plant and machinery for Greenfield projects in the mini-budget should also be granted to the brown field projects for balancing, modernization and replacement of existing units.
He said that for the hand-holding of SME sector and enabling it to realize its true potential, the government should announce a five year tax holiday for the new SMEs.
Almas Hyder welcomed the announcement by Federal Finance Minister Asad Umer for reducing the number of taxes by clubbing and hoped that policy in this regard would be announced in the coming budget.
He suggested that the frequency of tax payments of above proposed labour tax (EOBI, PESSI, WPPF, WWF clubbed) and Sales Tax (Federal and Provincial Clubbed) should be once a year. The frequency of the payments of corporate income tax should also be once a year. This will bring down the total frequency of tax payments to six a year.
He said that all tax payments should be accepted through credit card/debit card, direct debit or using internet/mobile banking. He further stated that the services sector (wholesale & retail trade, transportation, storage & communication, finance & insurance and housing) is the main driver of economic growth in Pakistan with a contribution of 60 percent in the GDP. To enable the services sector to realize its potential in terms of exports, it should be incentivized and included in the priority sectors in the "Trade Related Investment Policy Framework 2015-2023" for export oriented investments.
The LCCI chief said that IT sector in Pakistan has remarkable potential as evident by the increasing number of IT based startups in Pakistan. To enhance the exports of IT sector, it should also be included in the priority sectors for export oriented investments. Appropriate and easy payment solution also needs to be designed for IT sector.