FPCCI threatens to move SC over refunds issue
Says PML-N should return amount accumulated during its tenure
Tax. PHOTO: REUTERS
KARACHI:
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has threatened the government that it would knock on the door of the Supreme Court if the issue of export sales tax refunds was not resolved.
"We don't accept the government's decision regarding tax refunds. If these refunds are not released then exports would fall," FPCCI President Ghazanfar Bilour said in a post-budget press briefing.
The government has announced that it would refund Rs400 billion on different occasions but has only returned Rs45 billion so far, according to FPCCI.
Bilour said that the circumstances created due to the non-payment would prove lethal for medium- and small-scale traders. "Large companies can survive this but refunds are lifeline for small traders. They will be forced to shut their operations," he said.
He was also critical of the government ostensibly announcing that it has increased salaries by 10% when rupee has also been devalued by 10%.
He went on to say that the government has not given any favour to the construction industry, which is the backbone of the economy as it has many allied industries like steel and cement.
However, he said that there are positive features in the budget too, which are incentives for the agriculture sector; reduction of corporate tax; reduced taxation on LED lights and electrical cars. No tax for three years for new industry was also a positive feature.
FPCCI Vice President Tariq Haleem criticised the trade tax and said that it has raised the cost of doing business in the country.
Another FPCCI Vice President Zahid Saeed was critical of the government's tax regime on pharmaceutical companies, saying that they have been made to pay purchase tax when the government has been reducing taxes for films and dramas.
He also pointed out that the concern for investors for making capital investment in the country was that that whether the budget and economic policy would continue.
"The lacunae is that that business persons are concerned whether budget would continue or not. Economic continuity is very important and no businessperson would invest if there's no economic continuity," he said.
Meanwhile, Senior Vice President Syed Mazhar Ali Nasir praised the government for its decision on increasing health and education budgets, adding that it was expected since it was election year.
He further said that although the government has announced incentives for large scale manufacturers (LSM), nothing has been announced for Small and Medium Enterprises (SME), which are backbones of growing economies.
Published in The Express Tribune, April 29th, 2018.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has threatened the government that it would knock on the door of the Supreme Court if the issue of export sales tax refunds was not resolved.
"We don't accept the government's decision regarding tax refunds. If these refunds are not released then exports would fall," FPCCI President Ghazanfar Bilour said in a post-budget press briefing.
The government has announced that it would refund Rs400 billion on different occasions but has only returned Rs45 billion so far, according to FPCCI.
Senate panel gives approval to tax amnesty schemes
Bilour said that the circumstances created due to the non-payment would prove lethal for medium- and small-scale traders. "Large companies can survive this but refunds are lifeline for small traders. They will be forced to shut their operations," he said.
He was also critical of the government ostensibly announcing that it has increased salaries by 10% when rupee has also been devalued by 10%.
He went on to say that the government has not given any favour to the construction industry, which is the backbone of the economy as it has many allied industries like steel and cement.
However, he said that there are positive features in the budget too, which are incentives for the agriculture sector; reduction of corporate tax; reduced taxation on LED lights and electrical cars. No tax for three years for new industry was also a positive feature.
FPCCI Vice President Tariq Haleem criticised the trade tax and said that it has raised the cost of doing business in the country.
Another FPCCI Vice President Zahid Saeed was critical of the government's tax regime on pharmaceutical companies, saying that they have been made to pay purchase tax when the government has been reducing taxes for films and dramas.
He also pointed out that the concern for investors for making capital investment in the country was that that whether the budget and economic policy would continue.
"The lacunae is that that business persons are concerned whether budget would continue or not. Economic continuity is very important and no businessperson would invest if there's no economic continuity," he said.
Meanwhile, Senior Vice President Syed Mazhar Ali Nasir praised the government for its decision on increasing health and education budgets, adding that it was expected since it was election year.
He further said that although the government has announced incentives for large scale manufacturers (LSM), nothing has been announced for Small and Medium Enterprises (SME), which are backbones of growing economies.
Published in The Express Tribune, April 29th, 2018.