Pakistan China Joint Chamber of Commerce and Industry conducted think tank session today at the PCJCCI premises. Mr. Zarak Khan, President PCJCCI, Mr. Moazam Ghurki, Senior Vice President PCJCCI, Mr. Salahuddin Hanif, Secretary General PCJCCI shared their views regarding the financial status of the country.
Mr. Zarak Khan, President PCJCCI said while addressing the other members that, China has provided tax incentives to ease burden of small companies and organizations and different plans to control unemployment due to the current global pandemic. China’s 2.5 trillion yuan ($351.2 billion) tax relief plan for this year will help ease financial strains and accelerate production recovery of enterprises with key measures like further cuts in the value-added tax rates and social security contributions. He said that, Pakistan should imitate Chinese plan of actions to deal with the economic crisis at this hour of need. From January to April, total tax and fee reductions in China reached 906.6 billion yuan, including 485.7 billion yuan from the newly launched measures, the State Taxation Administration said. The administration will continually implement the tax and fee cut policies to help small-scale and privately-owned businesses offset economic slowdown risks, said a senior STA official. He further added that, our government should also ensure the provision of facilities on urgent basis especially to the documented small businesses and filers, who are paying taxes for the last 70 years and are now facing a severe financial crisis due to the prolonged lockdown.
Mr. Moazam Ghurki, Senior Vice President PCJCCI expressed his views and said that, In China, during the business resumption process, the Chinese government decided to reduce or cancel value-added taxes for small-sized businesses. VAT on services, such as public transportation, restaurants and hotels, tourism and entertainment, and culture and sports, will be exempted. We should also exempt micro, small, and medium-sized businesses from contributions to basic old-age insurance, unemployment insurance, and work injury compensation insurance schemes.
Mr. Salahuddin Hanif, Secretary General PCJCCI said that, tax and fee reductions will reduce the financial strain on companies, especially privately-owned enterprises, as weak economic growth and other novel coronavirus epidemic disruptions are constraining revenue and profit growth prospects. The central bank of Pakistan had announced an incentive package to help businesses avoid layoffs while directing banks to provide refinancing at zero per cent. But there isn’t any implementation has been seen in this package.