Line of action against mini-budget decision: KCCI, town associations to address joint press conference today

The Karachi Chamber of Commerce and Industry (KCCI) and town associations will address a joint press conference on Friday to announce their future line of action over caretaker government's move to introduce Rs 152 billion 'mini-budget' through presidential order.
Business community has expressed that presentation of budget for 2013-14 is the right of newly-elected government and there is no need to present any mini budget in a hurry and without thorough evaluation of its impact on economy and general public. They said that the move came at a time when the newly-elected National Assembly is about to start functioning within 15 days and the PML-N government plans to present the federal budget for the fiscal year 2013-14 by mid-June.
The proposed string of taxation measures, mostly in the form of indirect taxes, will add to the burden on the masses. They said that the caretaker government is reportedly to take major taxation measures to overcome revenue shortfall during 2012-13. They asked how can a caretaker government impose or increase taxes in mid of a new government's formation and when the elected house is about to take oath.
Meanwhile, members of Site Association of Industry (SAI) strongly criticised caretaker government's move to introduce minim budget before the end of fiscal year 2012-13 They expressed their dismay during an emergency meeting of the association held to discuss caretaker government move. They rejected the move of presenting any mini-budget before the newly elected government takes oath.
Chairman SAI Dr Arshad A. Vohra and Executive Committee unanimously agreed that any mini-budget with heavy taxes before the end of fiscal year 2013 is planned to sabotage the already crippled economy and worst affected business community at large. The industry already suffered badly due to strikes and riots is now going to be hit with a drone attack in the shape of mini-budget. In the last few years, government's role has been missing in providing and maintaining the industrial infrastructure, gas and electricity, a growth-oriented monetary policy and a conducive environment for promotion of trade and industry.
The news item published in almost all daily newspapers that mini-budget will increase sales tax from 16 percent to 17 percent; further tax of 2 percent on unregistered sales; turnover tax to be increased from 0.5 percent to 1 percent; withholding tax on cash withdrawal from banks to be increased from 0.2 percent to 0.3 percent ; income tax on exports proceed from 1 percent to 1.5 percent ; withdrawal of zero tax on domestic sales of five sectors- textiles, leather, carpet, sports and surgical etc.
The common man will also suffer in shape of increase in GST on sugar from 8 percent to 17 percent, 5 percent tax on value of new cars to be purchased and 10 percent withholding tax on all domestic electric bills with consumption of more than 1000 units.