Daily Times

ISLAMABAD: Speakers at a high-level pre-budget consultative meeting held by the Sustainable Development Policy Institute (SPDI) Monday urged the government to eliminate unpredictability in taxation policy and irrational investment policies in energy sector.

Leading stakeholders from public and private sector organizations, including members of business and trade community and office-bearers of twin cities chambers of commerce, participated in the consultative meeting

Aslam Hayat, a renowned expert in telecom sector, said that unpredictability regarding tax policy did not allow the industry to come up with its business plans effectively. He said government had time and again assured the sector for giving it the status of industry but the plan was never materialised. He urged the government to eliminate the element of double taxation in the industry

All Pakistan Textile Mills Association (APTMA) Punjab Chairman Syed Ali Ahsan said high cost of doing business, lack of institutional support, non-implementation of government polices as well as unavailability of raw material were some of the factor rendering the industry incompatible in international and local markets. He lamented that the industry was not benefitted from the textile package that the government had announced due to certain reasons.

Shahid Sattar, an expert at energy, said that the incumbent government had announced 20 points to revive the energy sector at its inception but only three of them were implemented. He said that the government must revisit its own manifesto so that it might come up with better policies on energy sector.

He said that government should consider the economic impact of its policies in energy sector, as high cost of business would have a negative impact on industries. He said the government should also concentrate on developing indigenous resources of energy, as import option would not remain sustainable for a longer period of time.

In his address, SDPI Executive Director Dr Abid Qayyum Suleri said, “Several sectors of our economy were facing a number of challenges, including complexities in tax systems.” He said that as an independent think tank, the SDPI was aiming to provide the government and relevant bodies, including Finance Ministry and the Federal Bureau of Revenue, inputs to reform economic policies based on recommendations of stakeholders.

He informed the participants that the SDPI would continue its endeavour to voice for a rational and equitable tax system and would hold another round of consultation to solicit pre-budget recommendations. He said that the major political parties of the country would be made part of the consultation process

Earlier, Dr Vaqar Ahmed, SDPI deputy executive director, opened up the discussion and said that the federal budget 2017-18 should be designed with four key objectives that include consolidation and rationalisation of taxes at federal and provincial levels, which in turn could reduce cost of doing business.

Likewise, he said, reduction in number and rates of anti-poor and regressive with-holding tax and federal indirect taxes would help reduce poverty across Pakistan whereas increase in public expenditure towards initiatives would lead towards increase productivity of agriculture and industry.