LCCI demands removal of 'complications'

The Lahore Chamber of Commerce and Industry (LCCI) president Mian Anjum Nisar and vice-president Shahzad Ali Malik have said that although Federal Budget for the year 2004-05 is balanced but still there are some 'complications' which needs to be removed to give a boost to trade and industry.
In a statement issued here on Tuesday, they said that 58-paisa reduction given to the industry in electricity charges would not benefit industry in general as it is meant only for those who have TOD meters. 'If additional charges on electricity tariff are withdrawn it could provide a lot of relief.
The problem of electricity and water shortage could not be resolved without construction of new dams. Challenges of post-WTO era could not be met without providing cheaper electricity to industrial consumers', they asserted.
They said although incentives given to agriculture sector have been hailed but still more steps are needed.
The mark up rate of government banks was higher than other banks; hence government must review it in case of agriculture. They said that there were certain ambiguities in the budget as import duty on various raw materials was still at 25 percent, which created anomalies.
They were of the view that burden of tax levied on petroleum dealers would definitely be passed on to the consumers so it should be reviewed. They added that five percent tax imposed on IT sector would hamper its growth. This tax should be withdrawn, they demanded.
Mian Anjum Nisar also expressed his concern that the steel mills had not brought down its prices despite announcement of zero percent duty on all its raw materials. He said all the industries have relation with Steel Mills directly or indirectly and such an attitude might not hinder the way of development.
Pakistan Steel Mills had not brought down its prices except the five percent sales tax reduced by the government.
He said that difference between locally manufactured billet and Pakistan Steel Mills billet was earlier used to be between 1500 to 2000 which had not reached to Rs 10,000. It was the biggest hurdle in the development of construction industry, he added.
Meanwhile, all the standing committees of the LCCI met here on Tuesday and discussed the budget. Various problems were brought forward and it was decided that all the stakeholders should submit ambiguities in budget till June 18 so as the Chamber could submit its necessary recommendations.