Faisalabad’s businessmen propose changes to budget

Ask government to withdraw some tax measures to provide stimulus to economy.

FAISALABAD:

The business community of Faisalabad forwarded post-budget proposals to the government and relevant authorities through their representative body, the Faisalabad Chamber of Commerce and Industry, according to a press statement issued on Saturday.

FCCI President Mian Zahid Aslam said that the chamber consulted various stakeholders and also took technical opinions and recommendations from professional experts. They said that the budget 2013-14 was overall a business-friendly budget and will give momentum to the economy, however, there were some discrepancies which needed to be addressed and resolved before the parliament’s approval.

Aslam explained that every registered individual for sales tax had become a withholding agent under the Income Tax Ordinance, 2001 regardless of the quantum of turnover. Among the proposals, Aslam said, the tax rates for different payments were proposed to be enhanced from 3.5% to 4%, which was not acceptable at any cost. The access given to the commissioner to tax records under the Sales Tax Act, 1990 needed to be withdrawn. Hike in general sales tax from 16% to 17% is opposed by all businessmen across the country, and the FCCI proposes that a percentage point hike in sales tax has a multiplier effect, which increases product cost, services, retail prices by about 5%-6%.



Furthermore, the FCCI suggested that monitoring or tracking by electronic or other means also needs to withdrawn and divulging clients’ information by banks also be restrained. They also proposed that a further 2% tax for supplies to unregistered persons also be withdrawn.

Faisalabad’s business community also proposed withdrawal of turnover tax – which was raised to 1% from 0.5% in the budget – one-fifth withholding tax as coupled with sales tax it results in double taxation for importers and the levy of 0.5% payable for every fiscal year after 2013 under the Income Support Levy Act.

He hoped that the first phase of consultation was not possible within the short time period the newly-elected government had to announce the budget. However, now the government will pay special attention to post-budget proposals and amend the budgets accordingly before the final approval of the parliament.

Aslam said that this budget will pave way for Pakistan’s economic revival, business growth besides providing much-needed relief to the lower-income slab of the country.

Published in The Express Tribune, June 23^rd, 2013.

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