FAISALABAD: Engineer Hafiz Ehtisham Javiad President Faisalabad Chamber of Commerce & Industry (FCCI) has termed federal budget 2021-22 as pro-industry as the government has withdrawn regularity and customs duties on 1600 tariff lines of raw material with total financial impact of Rs.4200 billion.

Giving his immediate reaction after announcement of federal budget in FCCI here today, he said that this step will ensure sustained and stable economic development and its trickledown effects will not only facilitate the masses but also have salutary impact on the all sectors of national economy.

He said that most of the proposals presented by different chambers including FCCI have been accommodated in this budget and hence we could term it as historic budget. Regarding SME sector, he said that government has announced a fixed tax scheme for this most important sector which is contributing about 66percent in national exports.

He also mentioned IT sector and said that a special regime with zero rating has been announced for the promotion of this sector which will also play a major role in the development of IT sector and increase export of its products. He said that major chunk of our population consistent of middle class.

The government has withdrawn excise and other duties on small cars up to 850-cc which will encourage mediocre class to have their own vehicles.

He said that government has announced multiple concessions in addition to allocating Rs.900 billion for the development budget.

Commenting on the environmental changes, Engineer Ehtisham Javaid said that government has decided to continue 10 billion tree tsunami schemes during this year which will bring positive impact on the overall environment.

Regarding tax collection, he said that an ambitious target of Rs.5800 billion has been fixed but it is a good gesture that government would generate additional taxes from new tax payers instead of twisting the arms of existing tax payers.

He also welcomed the self-assessment scheme and third party audit for small traders. However, he said that this proposal must be further fine-tuned to give required and tangible results.

He said that minimum salary has been fixed at Rs.20,000 which will give much needed benefit to the low-income groups. He said that inflation is one of the most daunting challenges. It is at 9.1 percent but the government is determined to bring it down to 6.5 percent during the next financial year. He also welcomed the government decision to enhance 10percent salaries and pension of government employees. Giving an overview of the budget speech, he said that it will accelerate the pace of industrial growth and if government succeeded to ensure its trickledown effects, it will give maximum benefits to the people and downstream industry.

He also welcomed the government decision not to yield the IMF pressure on enhancing electricity tariff and said that government must ensure continuity of its policies. He hoped that current federal budget will be for a period of next financial year and no mini budget will be announced during this year.

President FCCI said that Pakistan's biggest economic zone is being developed in Faisalabad and government has committed to give maximum facilities to the new investors. In this connection, the rate of turnover tax has brought down to zero. About the welfare aspects of the federal budget, he said that the government will give affordable houses to the low-income groups. Similarly, interest free loans will be provided to the farming community.

In this connection, he said that the threshold of Rs.0.2 million is very negligible as a farmer cannot purchase a tractor or other appliances with this amount. The government must enhance it to a reasonable level with a minimum interest rate, he added.

He said that despite of facilitation by the government, the commercial banks are creating hurdles for the farmers and other small industrialists. Government should take necessary measures to pass on maximum benefits to the target groups.

President FCCI also responded to the questions of the journalists' community and said that government should introduce a simple registration system for the unorganized SME sector. About technology up-gradation fund, he said that under it Rs.260 billion was released to the textile sector out of total allocation of Rs.450 billion.

Thus 250 major industrialists benefited from this scheme while its major chunk must be passed on to the SME sector. He also repeated his previous demand of forensic audit of entire textile chain starting from ginning to the fashion garments. It will help government to identify the mafia which is plaguing the economic and industrial sector.

Senior Vice President FCCI Chaudhary Tallat Mehmood, Chaudhary Muhammad Nawaz, Rana Ikram Ullah, Rana Fayyaz, Khurram Shehzad, Mirza Muhammad Aslam, Abdullah Qadri, Kashif Zia, Zeeshan ul Haq an Rashid Muneer were also present on the occasion.-PR

Copyright Business Recorder, 2021