The budget for the next fiscal year falls short of the industry's expectations, Chairman of the Site Association of Industry (SAI) Mohammad Irfan Moton said on Saturday. He saidm that the time was ripe for an aggressive budget but "unfortunately that hasn't happened". "I would have expected much more on the reform front," he said.
Criticising the government's move to nominate manufactures as withholding tax agents, he said that this was "top dampener", adding that the government had made "no effort" to broaden the tax base. "It is disappointing that the Finance Minister did not announce any major new policies and incentives to attract investors," says Moton.
He said that the government had announced to create 100,000 new jobs. But he said he was not sure "how it is going to happen". "The government has no avenue to create new jobs. It looks like that the government will further overburden organisations such as OGDCL, SSGC, Steel Mill, converting them into sick units. He said private sector invested to crate new jobs while the government should facilitate the private sector in this regard, encouraging new investments.
Chairman of All-Pakistan Lubricant Manufactures Association (APLMA) Mian Zahid Hussain welcomed the government's move to withdraw Federal Excise Duty (FEU) on lubricant base oil, finished lubricant oil and reclaimed oil in the budget. He said that the withdrawal of FED would help stabilise lubricant oil prices, beside curbing smuggling and manufacturing of fake lubricant oils.
He also welcomed the increase in income tax exemption limit. Chairman of the Federal B Area Association of Trade and Industry (FBAATI) Masroor Alvi said he doubted that the budget would spur industrial growth. "Given the fragile (economic) atmosphere, there might be more surprises in [the] fine print," he feared.
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