Daily Times

KARACHI: Major export-oriented industrial sector, chambers and leading business commerce and trade associations of the country have urged the government to give greater emphasis on promotion of power generation avenues in the forthcoming annual budget 2017-18.

The industries and domestic consumers are very much relying on furnace oil power generation, which is much costlier than other means of power generation.

Representatives of Pakistan Tanners Association, Pakistan Apparel Forum, Pakistan Yarn Merchants Association, All Pakistan Marble Mining, Processing, Industry and Exporters Association, Surgical Instruments Manufacturing Association Pakistan, All Pakistan Business Forum, Karachi and Lahore chambers, carpet and sport goods in their respective budget proposals have already suggested finance managers of the government that liberal investment policy, infrastructure development, broadening of tax base and creating jobs through industrialisation.

And more trade and business people urged government to at least allocate 12 percent to 15 percent of the total budget allocated for hydro power projects.

Reliance on costly thermal power has been jacking up the cost of production and the import bill as well.

Tackling the energy shortages lies in maximum funds to be allocated for construction of dams or water reservoirs, tapping of Thar Coal and completion of Iran-Pakistan gas pipeline.

They were of the view that country is in dire need of an urgent shift in its energy-mix in favour of hydro power and local fuels.

Agha Saiddain and Anjum Zafar from tanning sector, Ghulam Rabbani from yarn sector, Rana Abdul Sattar of cotton sector, Sanaullah Khan from onyx sector, Ibrahim Qureshi from business forum, Jawed Bilwani from apparel sector, Shakeel Ahmad from agriculture sector besides members of different trade bodies have urged the government to reduce sales tax to single digit and also cut corporate tax to make the upcoming budget business-friendly. The budget managers should announce measures to incentivise investors, broaden the tax net through documentation of economy, simplify tax system and reorganise the Federal Board of Revenue.

Promoting foreign direct investment, increasing the share of direct taxes in revenue and lowering the slab of indirect taxes would help achieve key economic targets set for fiscal year budget 2017-18.

The sales tax slab should immediately be curtailed in order to reduce inflationary pressures.

Measures promoting foreign direct investment, increasing the share of direct taxes and slashing the slab of indirect levies should top the budget, they hoped.

Agha Saddain said rising risk perception about investing into Pakistan has been hitting hard the FDI that fell sharply in recent months and needed to be tackled through a comprehensive policy approach by involving business community.

Ibrahim Qureshi was of the view government should bring liberal investment policy, infrastructure development, broadening of tax base and creating jobs through industrialisation.

The every unit of business community in their respective budget proposals compiled unbiased and transparent budget proposals.

He said only political will and drastic steps can revive the economy, which should be grown significantly and constantly for visible impact. He advocated the need for raising the country’s tax base so that tax-to-GDP ratio improves from current 9 percent.

Government should identify new potential taxpayers. All income earners should pay taxes equitably, including on income from agriculture related activities and all kinds of government and banks saving schemes, Ghulam Rabbani opined.

All income earners without exception of any sector should be registered with proper national tax number.

Tax authorities should ensure all NTN holders file annual income tax/wealth returns and wealth reconciliation statements.

Sanaullah Khan was of the opinion that culture of amnesty schemes should be completely eliminated as it discourages honest taxpayers.

Sales tax and income tax return forms should be made simple and standardised so that taxpayers do not have to face the hassle of new tax return forms on an annual basis.

Business community understands Finance Minister Ishaq Dar is utilising his best abilities to overcome the economic challenges but, at the same, the private sector considers itself duty-bound to tell the government of several hitches faced by it, they asserted.

Jawed Bilwani said private sector plays a leading role as far as economic policy framework is concerned.

In this context we have been playing role to bring the country out of the economic mire through well-tailored budget proposals.

The government and the private sector should be on the same page on minor and major economic issues so that they could be resolved amicably and without any further delay.

Shakeel Ahmad said that sector-specific details about the problems being faced by respective business sectors in proposals should also be considered before final shaping of the budget.