The Federation of Pakistan Chambers of Commerce and Industries (FPCCI) has termed the Federal Budget 2012-2013 a traditional budget, saying that revolutionary measures should have been taken to give boost to ailing economy of the country.
Addressing a news conference at Federation House on Thursday, FPCCI President Haji Fazal Kadir Khan Sherani said that FPCCI had sorted out negative and positive aspects of the Annual Budget 2012-13. He said non-traditional steps were required to be taken through this budget for a positive change in social and economic sectors. He invited Federal Finance Minister Dr Abdul Hafeez Shaikh to Federation House to have detailed discussions on the positive and negative aspects of the Annual Federal Budget 2012-13.
Haji Fazal Kadir Khan Sherani and former president FPCCI Tariq Sayeed complained that the Government had ignored most of their recommendations while making the Annual Federal Budget. He said that the government had overlooked the suggestion of business community to reduce sales tax rate from double digits to single digits. "We advised government to reduce sales tax rate from double digit to single digit which was not accepted due to which corruption and smuggling will not be curbed," Sherani added.
He said the government allocated Rs 183 billion for energy but it did not announce the projects through which the energy crises could be overcome. "Construction of dams and other infrastructure to generate electricity are the missing links in Federal Budget 2012-2013", he said, adding that government did not mention its policy to resolve the issue of circular debt of Rs 400 billion.
Sherani said that Small & Medium Enterprises (SMEs) were considered to be a backbone of the economy of any country but no development program was announced for SMEs. "We demanded Amnesty Scheme to increase investments in country and to alleviate poverty, which was not accepted," Sherani said. He said that FPPCI had suggested the government to cut down mark-up on bank loans as it is a major hurdle in investments in country.
"How it is possible that banks borrow loans from State Bank of Pakistan on high rate and later lend it to industry on low rates," Sherani questioned, adding that mark up should be slashed so that industry can borrow easy loans from banks. He said government has not taken any measures for alleviation of inflation and poverty in country.
Regarding Benazir Income Support Programme Kadir suggested that amount should be disbursed through Micro Finance Bank to make people self-sufficient. "Government has allocated meager amount of 2 percent for Health and Education which is not sufficient," he emphasised. Highlighting some positive aspects of Federal Budget 2012-2013, FPPCI President noted that reduction of turnover tax from 1 percent to 0.5 percent was a good step.
He said that government has removed duty on tea which would help in reducing smuggling of the commodity. "Reduction on custom duty by 5 percent is also good for industry," Sherani pointed out, adding that industry also hailed the decision of reducing 10 percent duty on import scrap rubber. "Allocation of Rs 10 billion for the promotion of import is also commendable step of the government," he apprised. He said that introduction of taxpayer card scheme would encourage new taxpayers. On this occasion former President FPPCI Tariq Saeed and others also spoke.