Korangi Association of Trade and Industry's (Kati) patron-in-chief S M Muneer has welcomed the government's decision of withdrawing powers of issuing Statuary Regulatory Orders (SROs) from the Federal Board of Revenue's (FBR). Commenting on the budget speech of Finance Minister Ishaq Dar, Muneer said that the decision of delegating powers of SROs to Parliament was a major success of the democratic government.
He said that the FBR's act of using its discretionary powers in the past had, on the one hand, distorted the taxation system and, on the other, discouraged people from coming into the tax net. Lauding the government's announcement that outstanding sales tax refund amount would be cleared by August, 2015 he said that the decision would help redress the business community's liquidation problems.
Meanwhile, Kati's president Rashid Ahmed Siddiqui said that a number of budgetary proposals announced in the next fiscal year budget (2015-16) would prove to be investment-friendly. He said that tax holiday announced for the agriculture sector would attract investment and promote the supply chain. Similarly, incentives announced for the energy sector are commendable, he added.
Hailing the incentives announced for the construction industry, the Kati chief urged the government to expedite the process of launching low-cost housing schemes for lower-middle class people. He hoped that government will consider imposing tax on agriculture income as the sector had remained out of the tax system for the past many years. He was, however, of the view that increasing cost for non-filers would not help in broadening the tax base.
He urged the government to arrest tax evaders, instead of giving them amnesty in certain tax rates. He said that the government's decision of reducing a number of duty slabs from six to five would also be a comfort zone for business community. Senator Abdul Haseeb Khan said that some harsh measures taken in the budget would prove detrimental for business.
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