Upcoming budget: FPCCI proposes reduction in taxes

Says strengthened banking system will lead to robust economy.

ISLAMABAD: With budget proposals in full swing, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday suggested reduction in taxes and improved regulations for the banking industry in a bid to make the sector stronger.

A strengthened banking system paves the way for a robust economy and helps support several other sectors such as the farming or business community, in addition to assisting various mega projects in the country.

FPCCI President Abdul Rauf Alam, while talking to a delegation of bankers, said that an improved tax structure can help bring in several members of the unbanked population, while also improving agricultural loans and providing better financing and business development facilities.

Alam said that the government should prefer facilitating Islamic banks and microfinance banks to boost the small medium size enterprise sector (SME).

Presently, the SME sector is facing many problems with lack of financing facilities on the top of everything which has hurt its growth, he added.

The FPCCI chief said that some of the laws are unclear, hurting growth of the banking sector while different rate of sales tax in different provinces has become an issue for the industry.

“Three years ago 10% people had a bank account and now it has dropped to 9% which indicates the trend of cash economy is growing which should be tackled by all the stakeholders,” he said.

He requested the government to take concrete steps to boost agriculture sector in the upcoming budget and asked banks to play their due role.

Published in The Express Tribune, May 18^th, 2016.

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