Business community has rejected proposal of presenting mini budget through presidential orders. They sharply reacted over news that caretaker government and Federal Board of Revenue (FBR) contemplating to present mini budget through presidential order.
They also rejected proposal of increasing Sales tax (GST) from 16 percent to 17 percent in federal budget 2013-14, and said that increase in taxes would bring a flood of price hike of all the products in the country including agriculture and industrial which would further put burden on already suffering general pubic and increase miseries to low income group.
They criticised proposal of increasing tax on all imports by one percent and said it would increase the prices of imported commodities in the country, adding that those taxation measures would fuel the inflation in the country. Chairman, Pakistan Chemicals and Dyers Merchants Association (PCDMA), Salim Valmohammad has expressed disappointment over the news of presenting mini budget through presidential order.
He further expressed displeasure over proposal of withdrawal of zero-rated facility and imposing GST, saying it would have negative impact on businesses. He urged the government and FBR to withdraw those proposals. He said trade and industry already overburdened due to high rate of taxes and gas and energy crisis and said any increase in taxes would have serious negative impact on trade and industry.
PCDMA Vice Chairman Zubair Riaz said FBR instead of increasing tax net proposed further burdening already registered under tax net. He said those measures would send a wave of increasing inflation and squeeze purchasing power of depressed general public. Mohammad Ali expressed disappointment over proposal to withdraw zero rating facility and imposing two to three percent tax wherein there was no tax at present.
He said as per news items, FBR had suggested imposing GST at standard rate on sugar from existing eight percent which was unjust. Meanwhile, Karachi Chamber of Commerce and Industry (KCCI) in a press release expressed deep concern over the news in media about mini budget by caretaker government and FBR and stated that KCCI would not accept any mini budget through presidential ordinance by the caretaker government.
Presentation of budget for 2013-14 is prerogative of the newly elected government. Moves like mini budget will have detrimental effects on the economy. It appears that such negative moves have been deliberately taken by FBR to destroy the economy as it will flourish black economy, smuggling, tax evasion, under-invoicing, mis-declaration and decline in exports.
The registered taxpayers are already burdened with multiplicity of taxes and the caretaker government wants to penalise them with additional taxes. The trade and industry is already reached on the brink of destruction due to precarious law and order situation and energy crises. The FBR does not have the will and intention to bring into the tax net those elements living luxurious life, having expensive houses and cars and who have not declared their real income and eroding taxes. KCCI warned the caretaker government to refrain from anti-business moves and said that decisions taken in isolation would not be accepted by the business and industrial community.