The Lahore Chamber of Commerce and Industry (LCCI) on Saturday advocated the implementation of direct tax model in upcoming budget in line with the advanced economies instead of indirect taxes. LCCI's President Irfan Qaiser Sheikh in a statement said that almost 70 per cent of total taxes collected in Pakistan consisted of indirect taxes while direct taxes are not more than 30 percent.
This, they said, was totally against the practice in advance economies where the ratio of direct taxes was 70 per cent. The LCCI President said that direct taxes meant levying taxes on the rich class, besides providing relief to the poor, adding that indirect taxes were hitting the general public hard. He said that indirect taxes such as levies and taxes on petroleum products and taxes on electricity and gas bills were not only jacking up the inflation but also hampering the business community call for a cut in interest rates in line with regional mark-up rates. He also called for focussing on investing in energy solutions and lowering tariffs on smuggling-prone items in the next budget to achieve key economic targets set for 2012-13.
Offering solutions to tackle energy shortages, he said the government would have to allocate maximum funds for building dams and water reservoirs, tapping of Thar coal, completion of Iran-Pakistan gas pipeline and establishment of LNG terminals.
The LCCI president said that sufficient funds should be allocated in the new budget for Dasu power project, Diamer-Bhasha, Munda, Gomal Zam, Satpara and Kurram Tungi dams. He said that at least Rs 200 billion or 10 percent of the budget should be allocated for hydel power projects. Irfan Qaiser Sheikh said that the country's reliance on costly thermal power was jacking up the cost of production and import bill. The country, he said, needed an urgent shift in its energy-mix in favour of hydel power and local fuels.
Comments
Comments are closed.