Zardari's concept of 'Charter of Economy' widely hailed

A number of chambers, trade bodies and federations have supported President Zardari's concept of 'Charter of Economy' which would be prepared by the business community in consultation with the political parties. Talking to Business Recorder here on Wednesday, representatives of most of the traders and chambers of commerce stated that the proposed 'Charter of Economy' should be implemented on an urgent basis otherwise the country may lose its major share of exports in the international market.
The timely implementation of the 'Charter of Economy' is crucial under current economic situation of the country. They said that the 'Charter of Democracy' is an effective step towards the solution of various economic issues being faced by business and trade. The government's initiative regarding the introduction of the 'Charter of Economy' can prove to be a futile effort if not implemented properly.
Interestingly, local trade bodies, which are against the documentation drive of the Federal Board of Revenue (FBR), have supported the 'Charter of Economy' which would be prepared with the consensus of political parities. These trade bodies usually declare their annual sales below the registration threshold of Rs 5 million to avoid sales tax registration. However, they are willing to contribute to the preparation of the 'Charter of Economy' with active involvement of all political parties.
The Charter of the Economy must be designed to address serious economic challenges facing the country in a non-partisan manner and with consensus and ensure that the economic policies are continued and not reversed with a change in the government. The President also pointed out that no outsiders can help us resolve our problems, adding we have to help ourselves and find our own answers to meet the challenges facing the country.
Mehfooz Elahi, President Islamabad Chamber of Commerce told Business Recorder, "We are not against the imposition of RGST but the way it would be implemented is objectionable. Some of the provisions of RGST bill include registration threshold Rs 7.5 million, uniform tax rate of 15 percent, all goods and all services in Capital Territory would be subject to sales tax and zero-rating for exports only. For documentation, keeping records for six years, issuance of tax invoices in case of supplies to registered persons and sales receipts in case of sale to unregistered person even supplies for small amounts are being envisaged".
"The president's announcement regarding the 'Charter of Economy' is being welcomed by the business community but the implementation should be assured as early as possible", Mehfooz Elahi urged. Muhammad Tariq Shafi, Vice-President of the Federation of Pakistan Chambers of Commerce and Industry said, "We are hoping that the Charter of Economy would not be treated like the Charter of Democracy. It is essential for a democratic government to understand the issues of its business community".
Shafi added, "The government should also impose tax on agri-income to broaden the tax net. The agriculture income should not be exempted at all. The energy crisis, circular debt, taxation reforms have become the most critical issues". Malik Sohail Hassan, FPCCI Chairman Standing Committee, told Business Recorder that, "It is the need of hour that we, the business community and political parties, join hands to make essential economic progress. It has been a common practice in India for the government to take all stakeholders including the business community and traders in confidence while deciding on economic policy. This I believe accounts for the forecasts that envisage that India will emerge as an economic giant within the next ten years."
On April 26, the President called upon the business community and leading entrepreneurs to come forward and recommend solid measures to the Government to revive the economy, contain inflation and promote growth and employment generation in the country.
Over sixty businessmen participated in the meeting that was also attended by Finance Minister Dr Abdul Hafeez Sheikh, Makhdoom Amin Fahim, Federal Minister for Commerce, Syed Naveed Qamar, Federal Minister for Privatisation and Water and Power, Dr Asim Hussain, Advisor on Petroleum & Natural Resources, Salim H Mandviwala, Chairman BOI, federal secretaries, representatives of chambers of commerce and high officials of ministry of finance and other relevant ministries.