Concrete steps needed to revive SMEs

APBF urges govt to cut taxes in budget to help businesses recover

LAHORE: The All Pakistan Business Forum (APBF) has urged the government to take concrete steps in the upcoming federal budget for 2020-21 to keep the industrial wheel running, especially for small and medium enterprises (SMEs), and save the livelihood of millions of workers associated with small industries.

“The government will have to make a visible reduction in taxes in the budget to help revive the businesses which are near bankruptcy due to prolonged worldwide lockdowns amid coronavirus,” it said.

APBF President Syed Maaz Mahmood, in a meeting with trade and industrial sectors held to review budget proposals for the new fiscal year, urged the finance ministry that the major focus should be on providing greater relief for the documented and registered SMEs. Mahmood said the APBF, in consultation with the entire business community, had finalised its budget proposals, which were also sent to the relevant government departments.

He emphasised that in order to save the economy from the impact of Covid-19, the government should announce special incentives for the cash-strapped SMEs.

“The government, in the budget, should allocate a sizeable amount for soft loan with maximum 3% mark-up, especially for SMEs, as the rest of the world has been providing loans at zero mark-up to bail out their collapsing businesses,” he demanded.

Expressing dissatisfaction over the financial packages announced so far by the government for the industry to deal with the challenges posed by the coronavirus, Mahmood called for a significant reduction in import duties and waiving sales tax, income tax and additional income tax, which were still being charged in this time of grave crisis. 

Published in The Express Tribune, June 11^th, 2020.

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