Budget to give boost to business, industry: FPCCI

LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Saturday said the federal budget 2018-19 would help boost business and industry.

FPCCI President Ghazanfar Bilor and Senior Vice President Syed Mazhar Ali Nasir, in a media briefing at the federation’s head office here, felicitated Finance Minister Dr Miftah Ismail on assuming the office and said the federation would invite him to discuss at length the budgetary matters.

They said the present government had made five-year planning to reduce corporate tax in an effort to encourage and promote mega businesses under which the Corporate Tax would be cut down up to 25 percent by year 2023.

Similarly, they mentioned, the Super Tax would also be phased out by 2021 with three percent reduction for banking sector and two percent for other people.

The FPCCI office-bearers said the budget would also have positive impact on agriculture, urea, cement and energy sector, however, there was a dire need to give priority to health, education, social security and youth affairs.

"We appreciate the Karachi Package that entails Desalination Plant and Green Bus Project. It is also commendable that withholding tax on non-filers has been reduced from 0.6 to 0.4 percent," they maintained.

They also hailed Dr Miftah’s initiative that there would no more devaluation of rupee. "We also appreciate the government for introducing Composite Audit System for holding tax audit of industry/business once in three years instead of every year, and this will improve business community's trust in government."

They, however, expressed concern over one-year delay in payment of tax refunds, due to which, they said, exporters would not be able to make new investments. They urged the government to ensure refunds payments at the earliest.

They noted that the country's foreign direct investment had reached to 2.4 billion dollar, which was mostly made by China under China-Pakistan Economic Corridor (CPEC). Pakistan also needed investments by other countries as well, they added.

They said increase in tax rate for petroleum products would enhance transportation charges and also increase the cost of doing business.

They hoped that the new government would continue with the budgetary measures announced by the present regime.