LCCI for remedial measures before budget approval

LAHORE: Lahore Chamber of Commerce & Industry (LCCI) on Saturday urged the national and Punjab assemblies to take remedial measures through quick consultation with business community well before the approval of federal and provincial budgets for financial year 2019-20.

LCCI President Almas Hyder, Senior Vice President Khawaja Shahzad Nasir and Vice President Faheem-ur-Rehman Saigal said in a media statement here that some aspects of the federal and provincial budgets were needed to be reviewed to generate economic opportunities. They added that rectification in the budgets could be made without affecting the government's endeavors aimed at economic revival of the country. These remedies would be equally beneficial for governments and the private sector.

They said that withdrawal of zero-rating regime from the export oriented sectors is a major area of concern for the businessmen. They feared that withdrawal of zero-rating facility without a proper and pre-tested mechanism would bring exports under immense pressure. The office-bearers were of the view that export revenues would also be affected by withdrawal of zero rating facility and this would potentially create a balance of payment crisis for the economy.

They said that SRO 1125 should not be withdrawn otherwise capital of exporters would be dried. "Country needs foreign exchange and that is possible only through export-led growth," they added.

They urged government to introduce an automatic and efficient system of Refund Payments whereby 75 per cent of refunds should be paid through the bank upon the issuance of the attested copy of Bill of Lading while the remaining 25 per cent of refunds should be paid through the banks against the export proceeds after 30 days.