Former President Faisalabad Chamber of Commerce and Industry and Chairman FPCCI Standing Committee on Industry Mian Muhammad Idrees has termed federal budget for the year 2008-09 as balanced. He further said that it would have positive impact on the national economy besides strengthening the stock exchange in spite of the volatile international markets.
He said the government has tried its best to ensure judicious distribution of funds in spite of limited financial resources. He appreciated 20 percent increase in the salaries of government employees, launching of Benazir Income Support Programme for poor and increase in the rate of profit on investment in national savings but said that increase in sales tax and Central Excise Duty would add to the sufferings of the industries.
He said that no reduction has been proposed in import duty on raw material which would have a negative impact on the over all economy. Criticising increase in sales tax from 15 to 16 percent, he said that it would add to the cost of doing business.
He said duty on 300 luxury items is a positive step and added that increase in the salary of industrial workers from Rs 4600 to Rs 6000 and fixing pension up to minimum Rs 2000 would not facilitate workers and pensioners except promoting wage-push inflation in the country.