Feedback from the private sector plays a fundamental role in formulating appropriate policies for the trade, industry and economy. In this regard, the Lahore Chamber of Commerce and Industry (LCCI) has framed a set of proposals for the federal budget 2021-22 and forwarded them to the government departments.
Talking to Federal Board of Revenue (FBR) Inland Revenue (Operations) Member Muhammad Ashfaq and Inland Revenue (Policy) Member Chaudhry Muhammad Tariq on Monday, LCCI President Mian Tariq Misbah said that the budget proposals were a composition of the issues being faced by the business community and recommendations for their best possible solution.
The LCCI president said that the lack of balance in the tax incentive structure was resulting in de-industrialisation and it needed to be addressed.
The LCCI has recommended that incentives, which are currently provided to the five zero-rated sectors, should also be offered to other important export sectors of the economy eg engineering, pharmaceutical, rice, halal meat, etc.
He said that duties and taxes on raw material for the pharmaceutical industry should be brought down to reduce the input cost.
“Tariff rationalisation is the need of the hour,” he said, adding that all the raw material, which was not manufactured locally, should be declared zero-rated through the elimination of customs duty, additional customs duty and regulatory duty.
He expressed hope that the new sales tax e-refund system (FASTER Plus) would be improved further by removing technical glitches, if any. Furthermore, the income tax refunds should also be released on an urgent basis through this system, he urged.