The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has termed the Federal Budget 2013-14 as apparently balanced. Commenting on the budget speech of Finance Minister Ishaq Dar, President FPCCI, Zubair Ahmed Malik, said that the budget was presenting a mix picture and need to be analysed carefully. He said that the budget had so many positive things but at the same time there were some negatives steps, which would directly hurt the masses, besides trade and industry.
The FPCCI President said that it seemed the government had preferred and mainly focused on tax revenue instead of giving relief to the masses. "The government's tax polices are still uncertain and it seems that the government is again focusing on indirect taxes instead of direct taxes," he added.
He maintained that 45 percent cut in Prime Minister Secretariat budget and tax on real state were good steps, however the one percent increase in sales tax was shocking announcement and would result in high inflation. Malik welcomed the reduction in corporate tax from 33 to 30 percent and said that tax holiday period upto 10 years in new project in special economic zones would attract new investment in the country.
"We urged finance ministry to accept the FPCCI demand and eliminate SRO culture," he said. He maintained that FPCCI was carefully analysing the budget and would comment on the budget in detail on Thursday in a press conference.
Former President FPCCI S. M. Muneer said that some measures announced in the budget speech were very encouraging. "The FPCCI will extend its full support to the newly-elected government, if the austerity drive at PM and other government departments would be implemented as per the announcements," he added. He criticised the raise in sales tax and said that this would result in price hike in the country.
Former President FPCCI Tariq Saeed said that the budget was quite ambitious but the revenue generation sources were not clearly described in the budget speech. He said that reducing tax on corporate sector was a good step which would encourage business in the country. Chairman Pakistan Intellectual Business Forum, Mian Zahid Hussain, said that increase in sales tax across the board would adversely affect the common man. "Therefore, the government needs to take such steps, which should not hurt the masses," he urged. Chairman KATI, Zubair Chhaya, said that government had announced big allocations in the budget but did not explain how this money would be generated.