Rawalpindi Chamber of Commerce and Industry (RCCI) President Hussain Ahmed Ozgen has termed the budget 2004-05 balanced and business-friendly.
He said the government is focusing on agriculture and industrial sector, which would help in strengthening the socio-economic structure of the country and would further help in creating job opportunities in the public and private sectors.
Talking to a delegation of traders, who called on him in his chamber office, he said, the allocation of Rs 202 billion for Public Sector Development Programme (PSDP) is 26 percent more than the previous allocation of Rs 160 billion. It will put a positive impact on the overall socio-economic structure of the country.
He said this would help in infrastructure building in communication, electrification, education, health and other human resource development sectors and would also help in creating job opportunities for unemployed.
Talking about the reduction in electricity rates, Ozgen said, although it is not at par with the expectations of the people, it would help in flourishing the industries in the country.
He said that the decrease of 10 paisa per unit relief on domestic, 25 paisa per unit on commercial and 58 paisa per unit on industrial charges is not sufficient and the government should announce further relief as soon as possible.
He appreciated the government's decision for 15 percent increase in the salaries of government employees and 16 percent in the pensions. He said that it is need of the hour to raise the salaries keeping in view the price hike.
While lauding 134 percent increase in education, he said, there is a need to take bold initiatives in this important sector. He also lauded Rs 16 billion allocation for health, which is 50 percent more than the previous year.
He said that the relief given to the agriculture sector in the shape of reduction of prices of fertilisers and cut in various kinds of duties on agri-machinery would have a positive impact on the economic structure.
No new tax was imposed in the budget, which indicates that the government wants to boost industry and investment in the country.
The RCCI president said that the revenue target for the Central Board of Revenue (CBR) was fixed as Rs 580 billion as compared to the previous Rs 510 billion. It is an ample proof of the ambitions of the government in spreading the tax net.
He said abolition of the withholding tax on the import of machinery and raw materials for the industries would attract the investors in almost all the sectors and could prove panacea for country's economy. "In the past it was a big hurdle for the investors," he added.
The government wants to boost the industry, particularly the construction industry, he said adding that decrease in the excise duty of construction machinery and abolition of taxes on paints, cables and wire could boost this industry. "There is a shortage of households in Pakistan and incentive of soft loan for government employees would help in covering this shortage.
Regarding the general sales tax (GST), Ozgen said that the steps taken in the budget with regard to sales tax have encouraged the business community.
"We are sure that the government will take further steps to make the procedures more easy," he said.
He also lauded the steps taken by the government for the promotion of small and medium enterprises (SMEs) and for revival of sick units, and said this would help in reduction of poverty and unemployment from the country, besides improving the economy.