Punjab Finance Minister Makhdoom Hashim Jawan Bakht has said that focus of provincial budget 2019-20 is human development, promotion of trade, industry, agriculture and greater allocations for social sectors. "Punjab Budget would be balanced despite economic hardship", the Minister said while speaking at the Lahore Chamber of Commerce and Industry here Tuesday. He said that healthy workforce is a must for economic development therefore special attention is being given towards human resource development.
He said that poverty alleviation program "Ehsaas" for the welfare of the poor and downtrodden segments of society has already been launched. He said that absolute usage of Annual Development Fund would be ensured and its utilization during financial year 2019-20 would be highest. He said that technology is being promoted in tax collection to overcome various issues being faced by the taxpayers.
Makhdoom Hashim Jawan Bakht agreed with the LCCI President's proposals that we should move towards inspection free regime. "Suggestion has been moved for establishment of Punjab Smart Regulation Authority and good news would be given soon in this regard, said adding that improvement in ease of doing business is one of the top priorities of the government. He said that industrial zoning would be finalized during the upcoming financial year.
LCCI President Almas Hyder said that slash in the Annual Development Program (ADP) expenditure from Rs 576 billion (actual spending) in 2017-18 to Rs 238 billion (allocation) in budget 2018-19 has negatively impacted the ongoing infrastructure projects and other development activities in the province. There should be a considerable increase in the size of Annual Development Program for the year 2019-20 to stimulate economic activity in the province, he said.
He said that one tax collection authority for collection of both federal and provincial taxes, frequency of tax payment and number of taxes should be reduced by clubbing. The provincial government should rezone the areas in and around urban centres in the province both for industrial and commercial use to help entrepreneurs invest in green field and other projects. He also stressed the need for immediate setting up special economic zones and demarcation of industrial and economic zones.
He said that aquifer charges of Rs 50,000/ per month for 1 Cusec for domestic, industrial, commercial, non residential and corporate bodies extracting water through tube wells should be reduced. The sales tax on services is being charged at different rates by the Punjab Revenue Authority (16 percent) and Sindh Revenue Board (13 percent) which creates an environment of competition among the provinces, he said. He said that uniform rate of sales tax on services should be charged by all the provinces. If the service provider is resident in Punjab and the service recipient is in Sindh, then both are required to pay sales tax on services in their respective provinces. To avoid this dual taxation, the revenue authorities of the provinces should agree on jurisdictions and common rules, he added.
The LCCI President said that imposition of Punjab Infrastructure Development Cess (PIDC) at 0.90 percent has burdened up existing taxpayers in the province instead of broadening tax net. It hampers the businesses of clearing agents and transportation companies that provide sizeable employment therefore it must be abolished, he suggested.
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