Incentives offered: Agriculture, construction and textile emerge victorious
Suspension of minimum tax on builders and reduction in import duty on construction machinery hailed
Rice Exporters Association of Pakistan (REAP) Chairman Rafique Suleman, in a statement, welcomed the budget. PHOTO: APP
KARACHI:
The construction and agriculture sectors – touted as the two most labour-intensive ones by Finance Minister Ishaq Dar in his budget speech – have welcomed the government’s initiatives on Friday.
“The suspension of minimum tax on builders for three years and reduction in customs duty on import of construction machinery are very good decisions for the construction industry,” Association of Builders and Developers of Pakistan (ABAD) Convener Budget Sub-Committee Saleem Kassim Patel said.
Patel, however, said that the availability of housing finance at 6% and cheaper steel products by abolishing regulatory duty on the import of steel billets are steps that the government should take if it wants to see new investments in the sector.
The federal minister, in his speech, also pointed out that the government wants to give incentives to the construction and agriculture sectors in the hope that it can create new jobs on a larger scale.
The construction sector has demanded that the government recognise it as a major source of employment. It was like music to the ears for the industry when Dar said that the construction can be an engine of economic growth.
The announcement, which attracted admiration from almost all sectors, was the scheme under which the government will provide interest-free loans for 30,000 solar tube wells in the next three years.
Looking at agriculture
Rice Exporters Association of Pakistan (REAP) Chairman Rafique Suleman, in a statement, welcomed the budget and appreciated the steps taken by the federal government especially to ensure rice mills remain tax free for a year.
“The reduction in import duty and sales tax on agricultural machinery is a significant step and we are hopeful to see the long lasting results in the next year. This will also result in the increase of sowing as well as rice exports,” he added.
Pakistan Fruit and Vegetable Exporters, Importers and Merchant Association (PFVA) Research and Development Chairman Waheed Ahmed commented that the budget is an encouraging one for the agriculture sector.
However, some had divergent views. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Chairman Standing Committee on Horticulture and Agriculture Produce Ahmad Jawad said no concrete measures were taken in the budget for the transformation of the agriculture, horticulture sector and its exports, except tax incentives and addition in agriculture credit.
“We cannot achieve the GDP target without heavily investing in the agriculture sector,” Jawad added.
Textiles
Budget revelations also showed that the textile sector emerged as a key gainer. For textiles, the EXIM Bank of Pakistan will start operations in fiscal year 2016 to facilitate exporters, export refinance rate has been cut to 4.5% from 6%, long-term refinance rate has been cut to 6% from 7.5%, benefit of duty drawback of local taxes and levies scheme will remain available for fiscal year 2016, stated JS Research on Friday.
Published in The Express Tribune, June 6th, 2015.
The construction and agriculture sectors – touted as the two most labour-intensive ones by Finance Minister Ishaq Dar in his budget speech – have welcomed the government’s initiatives on Friday.
“The suspension of minimum tax on builders for three years and reduction in customs duty on import of construction machinery are very good decisions for the construction industry,” Association of Builders and Developers of Pakistan (ABAD) Convener Budget Sub-Committee Saleem Kassim Patel said.
Patel, however, said that the availability of housing finance at 6% and cheaper steel products by abolishing regulatory duty on the import of steel billets are steps that the government should take if it wants to see new investments in the sector.
The federal minister, in his speech, also pointed out that the government wants to give incentives to the construction and agriculture sectors in the hope that it can create new jobs on a larger scale.
The construction sector has demanded that the government recognise it as a major source of employment. It was like music to the ears for the industry when Dar said that the construction can be an engine of economic growth.
The announcement, which attracted admiration from almost all sectors, was the scheme under which the government will provide interest-free loans for 30,000 solar tube wells in the next three years.
Looking at agriculture
Rice Exporters Association of Pakistan (REAP) Chairman Rafique Suleman, in a statement, welcomed the budget and appreciated the steps taken by the federal government especially to ensure rice mills remain tax free for a year.
“The reduction in import duty and sales tax on agricultural machinery is a significant step and we are hopeful to see the long lasting results in the next year. This will also result in the increase of sowing as well as rice exports,” he added.
Pakistan Fruit and Vegetable Exporters, Importers and Merchant Association (PFVA) Research and Development Chairman Waheed Ahmed commented that the budget is an encouraging one for the agriculture sector.
However, some had divergent views. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Chairman Standing Committee on Horticulture and Agriculture Produce Ahmad Jawad said no concrete measures were taken in the budget for the transformation of the agriculture, horticulture sector and its exports, except tax incentives and addition in agriculture credit.
“We cannot achieve the GDP target without heavily investing in the agriculture sector,” Jawad added.
Textiles
Budget revelations also showed that the textile sector emerged as a key gainer. For textiles, the EXIM Bank of Pakistan will start operations in fiscal year 2016 to facilitate exporters, export refinance rate has been cut to 4.5% from 6%, long-term refinance rate has been cut to 6% from 7.5%, benefit of duty drawback of local taxes and levies scheme will remain available for fiscal year 2016, stated JS Research on Friday.
Published in The Express Tribune, June 6th, 2015.