FPCCI seeks improved tax structure, relaxation to banking companies

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called for reduction in taxes and improved regulations governing banking industry to strengthen banking system which will make economy stronger. A strengthened banking system is must to cater for the needs business and farming communities and for the success of various mega projects, including China-Pakistan Economic Corridor (CPEC), President FPCCI Abdul Rauf Alam said on Tuesday.
Talking to a delegation of bankers, he said that improved tax structure and relaxation to banking companies can be linked to reaching out to unbaked population, improved agricultural loans, better project financing and business development facilities and investment in human resource as well as technology up-gradation.
Banks should brace for changed scenario to empower their human talent with latest technology and embark upon regular capacity building of the employees. Abdul Rauf Alam said the government should prefer facilitating Islamic banks and microfinance banks to boost SME sector which encompasses around ninety six percent businesses as many countries have climbed the ladder of success through focusing on this sector.
Presently, the SME sector is facing many problems with lack of financing facilities on the top of everything which has retarded its growth, he added. The President FPCCI said that some of the laws are unclear hurting growth of banking sector while different rate of sales tax in different provinces has become an issue for the industry.
Three years ago ten percent people had a bank account while now the ratio has dropped to nine percent which indicates that trend of cash economy is growing which should be tackled by all the stakeholders, he said. He lauded the government for taking concrete steps to boost agriculture sector in the upcoming budget and asked banks to play their due role as this sector is backbone of the economy. The government has allowed banks to conduct business with Iran which will improve bilateral trade and reduce smuggling, he said.