The business community has positively reacted to the Federal Budget 2014-15, as most of the businessmen and industrialist termed it business-friendly and balanced budget. Some of the businessmen and industrial associations termed the budget balanced, pro-poor and well thought-out economic revival plan.
They welcomed extension in duty-free textile machinery import scheme for two years, Rs 100 billion allocated to set up EXIM Bank for boosting imports & exports, decrease in mark up rate for Export Refinance Scheme of State Bank of Pakistan from 9.4 percent to 7.5 percent from July 1, 2014, tax on wedding halls reduced to 5 percent from 10 percent, maximum customs duty being brought down from 30 percent to 25 percent, retailers having electricity bills of less than Rs 20,000 in a month shall be charged only 5 percent of the bill as sales tax on retail sales, while those with higher bills shall be charged 7.5 percent as sales tax on retail sales etc as good steps.
Chairman, Businessmen Group, Siraj Kassam Teli, while appreciating the budget, underscore the need for its effective implementation. He was of the view that there was no relief for general public in the budget 2014-15, as sales tax has been maintained at 17 percent. He said for the first time budget has been prepared in consultation with business community and around 50 percent of all budget proposal of chambers have been included in the budget. Chairman Site Association of industry (SAI), Younus M Bashir said that allocation has been made for Karachi Circular Railway whereas no allocation has been made for improving law and order in Karachi.
He welcomed extension of duty free import of machinery for two more years to take full advantage of GSP Plus facility. He also hailed government step to reduce mark-up rate on exports finance from 9.4 percent to 7.5 percent. He termed the budget as balanced. Chairman Pakistan Denim Manufacturers and Exporters Association Dr Ikhtiar Baig appreciated reduction of mark-up rate on exports finance, which will reduce the financial cost of exporters by 2 percent.
He also welcomed the decision to establish EXIM Bank to enhance export credit and reduce cost of borrowing for export sector on long term basis. The bank will provide liquidity to exporters, he added. He also appreciated incentive under draw-back for local taxes and levies to be given to exporters of textile products on FOB values of their enhanced exports if increased beyond 10 percent (over last year's exports) at the following rates: Garments 4 percent, Made ups 2 percent; and Processed fabric 1 percent. Former chairman Korangi Association of Trade and Industry (KATI), Zubair Chayya said budget 2014-15 will have no impact on prices of goods produced locally. Neither prices will move up nor down as a result of the budget. About imposition of 17 percent sales tax on CNG, he pointed out that there was a 24 percent tax on CNG which was withdrawn.
He termed the budget as balance.
Comments
Comments are closed.