Federation of Pakistan Chambers of Commerce and industry (FPCCI) Vice President Engineer M.A. Jabbar has emphasised the need for developing infrastructure to support modern and efficient economy. He was speaking at the pre-budget conference organised by the Institute of Cost and Management Accounts of Pakistan (ICMAP) in collaboration with the Kotri Association of Trade and Industry (Kati) at Kotri on Saturday. He said our priorities should be on reliable and affordable power supplies for the industry.
He said our first priority should also include policy and institutional reforms attracting investment of private sectors in water sector and institutional reforms.
He said our second priority should be to establish conducive business environment to meet challenges of the modern world, reducing the burden of government bureaucracy and regulation, particularly of SMEs, improvement in labour market and tax administration.
He said our third priority should be to create and develop job-oriented sectors to sustain growth and policies should be capital intensive and not labour intensive.
He said development of rural electrification, roads, irrigation management, modern agriculture technology, land registration and financial backup through access to credit to the poor people.
He also emphasised the need for an investment climate, which support small and rural entrepreneurs.
Referring to the WTO rules and regulation, he said it should be taken into account with reference to survival of domestic industry, comparison of the level of protection to the domestic industry prior and after the globalisation measures and final listing for prioritising of the type of industries for development.
He also proposed that sales tax should be reduced by 5 percent from 15 percent to 10 percent and income tax on all categories be reduced by minimum of 10 percent.
He said all exemptions should be gradually eliminated and all segments of the society should be brought under the tax net. He also pointed out that a 'further tax' of 3 percent on sales tax on unregistered buyers is the main cause of under-invoicing.
Many importers and traders of wholesale nature do not have a profit margin of 3 percent; consequently they are compelled to do this for survival to avoid 3 percent further tax.
He said elimination of 3 percent further tax would result in increase in net sales tax collection. He also suggested suitable reduction in rate of withholding taxes.
Professor Dr Khawaja Amjad Saeed expressed optimism on improvement of the GDP growth and hoped that it would further increase in coming years.
He suggested that the government should introduce investment-friendly policies for sustainable GDP growth.
Referring to the post-WTO regime, he said now we are not in a time where we could survive on aid or under protectionist policies and added that now Pakistan's trade and industry would be exposed to international competition and called upon the government to introduce a package of incentives for industrialists and exporters.
He suggested that in order to attract more and more investment in the country it is imperative to manufacture quality and cost effective product to compete in international market.
Former HCCI president Emad Siddiqui, in his presentation, outlined some basic points, which should be kept in mind while finalising the Finance Act 2005.
He said taxes should be reduced gradually to bearable limits and should not be increased from year to year
He emphasised the need for providing basic amenities to citizens and taxpayers and said that they should be informed of projects where the tax paid by them is being utilised.
He also demanded that the area of both industrial estates at Kotri and Hyderabad should be increased.
He also suggested that the utility bills should also be reduced to avoid incident of power, water and gas theft that are on the rise.
Kati chairman Mian Tauqir Tariq, while speaking at the conference, said during the last couple of years the macroeconomic indicators showed improvement but that is not enough and all have to work hard to achieve the required targets of the economic growth.
Referring to the budget 2005, he hoped that it would focus on growth, attracting investment, employment generating and reducing poverty. He also emphasised the need for development of agriculture and service sector, which would help alleviate poverty.
Syed Qamar Zaman Shah, addressing the conference, pointed out various constraints in sustainable development of the agriculture sector.
ICMAP vice-president Qaiser Mufti also addressed the conference. Advisor to the Sindh Chief Minister for excise M.A. Jalil, who was the chief guest, arrived four hours late and presided over the second session of the conference.
Later, he presented shields to speakers. Kati senior vice-president Tariq Baloch presented vote of thanks on behalf of the ICAMP forum, Karachi chapter.
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