Budget hopes, concerns: Experts suggest favourable tax laws, better incentives

FPCCI chief says simplified tax system will bring more retailers in the net.

ISLAMABAD: Experts and industry players have pressed the government to provide an environment conducive to capital inflows such as friendly tax laws and improved incentives for investors.

They were speaking at a seminar organised by the Express Media Group on the upcoming budget entitled “Budget: Hopes, Expectations and Concerns”. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Chairman Abdul Rauf Alam suggested that the government should offer more incentives and set a simple tax procedure so that maximum capital could flow to the country.

“If the government introduces a simple tax procedure, then maximum number of people in the retail sector will come under the tax net,” he said. Alam asked businessmen to play their due role and manufacture products according to international standards, which would lead to an increase in exports. He also emphasised the need for providing incentives for the business community keeping in view the tax burden on them.

Senior journalist M Ziauddin stressed that the basic responsibility of the state was to provide affordable education, health care, food, housing and transport for its population. “If any government fails to provide these basic services, it means that it has failed in its responsibilities,” he said.

Saarc Chamber of Commerce and Industry Vice Chairman Iftikhar Ali Malik suggested zero duty on all exports in order to give a boost to the country’s weakening shipments. He underlined the need for reducing general sales tax and promoting small and medium enterprises so that more people in rural regions could start their businesses.

Calling the China-Pakistan Economic Corridor a key opportunity for the nation, Malik said the government must build infrastructure in addition to developing agriculture on both sides of the corridor. “We can develop many new cities through connectivity with the corridor,” he said.

Association of Builders and Developers of Pakistan (ABAD) representative Arif Yousuf was of the view that the government must not ask the source of wealth from the first buyer of property as it would encourage many investors to come to Pakistan and invest in real state.

“Many investors in Dubai and other countries are eying Pakistan but certain laws stand as a hurdle to their way,” he noted. He proposed that the credit limit for withholding tax on property must be increased from Rs50 million to Rs150 million, which would encourage more people to bring their capital to Pakistan.

Published in The Express Tribune, May 25^th, 2016.

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