Reaction: Budget draws mixed reviews, taxes lauded and blasted
ICCI opposes increased tax rates, PBIF hails budget measures.
People watch the budget speech in Islamabad. PHOTO: NNI
ISLAMABAD:
The business community, in a meeting at the Islamabad Chamber of Commerce and Industry (ICCI), has expressed several reservations on the Federal Budget 2015-16, saying that the government has not come up with any tangible measures to help entrepreneurs in reducing the cost of doing business and become more competitive in the global market.
Chairing the meeting, ICCI President Muzzamil Hussain Sabri said that the business community has strongly called for appropriate cut in general sales tax to spur the growth of business and industrial activities.
However, the government has ignored their demands despite the fact that GST in Pakistan was close to being highest in the region making our industry and exports uncompetitive.
He said the ICCI had proposed to reduce tax rates that would help in broadening the tax base, however, instead of bringing down taxes, the government has imposed many incremental duties that will create more difficulties for business and industry in addition to putting more burden on the common man.
According to Sabri, businessmen have been urging for zero-rated tax on export-oriented sectors. “However, instead of paying attention to our demand, government has further increased sales tax from 2 to 3% on sales to un-registered buyers,” said Sabri. “This will create liquidity problems for manufacturers and would make achieving export targets more difficult.”
Contradictory view
On the other hand, Pakistan Businessmen and Intellectuals Forum (PBIF) President and former provincial minister Mian Zahid Hussain on Saturday said Rs4.313 trillion federal budget will trigger long-awaited national development.
The budget shows an inclination towards development over stability which will unleash business activities boosting employment, collections and foreign exchange reserves, he added.
He said that a better budget was not possible at this critical juncture and a bitter pill needed to be swallowed to repair the limping economy and end dependence on donors.
Hussain said that taxes and defence are a must to keep the country safe and there is no country without a rigorous tax system. However, he opined that the tax system should be focused on nobility and not on the man on the street.
Published in The Express Tribune, June 7th, 2015.
The business community, in a meeting at the Islamabad Chamber of Commerce and Industry (ICCI), has expressed several reservations on the Federal Budget 2015-16, saying that the government has not come up with any tangible measures to help entrepreneurs in reducing the cost of doing business and become more competitive in the global market.
Chairing the meeting, ICCI President Muzzamil Hussain Sabri said that the business community has strongly called for appropriate cut in general sales tax to spur the growth of business and industrial activities.
However, the government has ignored their demands despite the fact that GST in Pakistan was close to being highest in the region making our industry and exports uncompetitive.
He said the ICCI had proposed to reduce tax rates that would help in broadening the tax base, however, instead of bringing down taxes, the government has imposed many incremental duties that will create more difficulties for business and industry in addition to putting more burden on the common man.
According to Sabri, businessmen have been urging for zero-rated tax on export-oriented sectors. “However, instead of paying attention to our demand, government has further increased sales tax from 2 to 3% on sales to un-registered buyers,” said Sabri. “This will create liquidity problems for manufacturers and would make achieving export targets more difficult.”
Contradictory view
On the other hand, Pakistan Businessmen and Intellectuals Forum (PBIF) President and former provincial minister Mian Zahid Hussain on Saturday said Rs4.313 trillion federal budget will trigger long-awaited national development.
The budget shows an inclination towards development over stability which will unleash business activities boosting employment, collections and foreign exchange reserves, he added.
He said that a better budget was not possible at this critical juncture and a bitter pill needed to be swallowed to repair the limping economy and end dependence on donors.
Hussain said that taxes and defence are a must to keep the country safe and there is no country without a rigorous tax system. However, he opined that the tax system should be focused on nobility and not on the man on the street.
Published in The Express Tribune, June 7th, 2015.