Leaders of Karachi Chamber of Commerce and Industry (KCCI) have termed the federal budget 2019-20 as suicidal and urged Prime Minister Imran Khan to hold meeting with the chamber to discuss its impact and rectified it prior to passing the budget from assembly. They said that the PTI government is already in confrontation with opposition parties hence they apprehended that general public may be on road to protest against budgetary impacts.
Leader of Businessmen Group (BMG) and former president of KCCI, Siraj Kasim Teli said that taxes had been imposed on edible oil, sugar, cement, automobile, beverages, gold, silver, bakery items, CNG, powder milk, etc, and all of them would have direct impact on general public and businesses. He said the budget target was also overambitious that couldn't be achieved. He noted failure in achieving any target of 2018-19 and asked how they estimated to achieve such a huge target now.
"It is incorrect that business will absorb impact of all the taxes. They pass it on to end consumers," he said, adding that it seemed the taxes have been imposed without taking paying capacity into consideration. He opposed tax increase on small vehicles. He also criticised imposition of 17 percent tax on five zero rated sector, the biggest source of foreign exchange earning for the country.
BMG veteran expressed fear that Pakistani products might not be able to compete in international market. KCCI president KCCI Junaid Esmail Makda said that it is IMF-friendly budget. He apprehended the country would face a wave of soaring costs of the goods produced locally or imported from abroad. He said there is nothing in the budget that could reduce cost of dong business, increase exports, attract foreign and local investment and boost industrialisation in the country.
"Business community feels that there is something between the line, which will be cleared after few days going through the budget documents," he said, adding that the PIT had given this budget keeping its manifesto aside. Former president KCCI Anjum Nisar urged the government to hold meeting with business community and discuss impact of taxation on businesses and general public. He apprehended that tax collection target would not be achieved. KCCI's ex-president Zubair Motiwala called it very harsh budget that must be reconsidered. He stressed the need to increase export and decrease imports.
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