FPCCI president Mian Nasser Hyatt Maggo described the current situation as a “most unfortunate situation” because no one from the business community or other relevant stakeholders has been consulted about the mini-budget approval process. IMF’s request for an increase in revenue from Rs700 billion to Rs343 billion is said to have been met by the Federal Board of Revenue (FBR). According to him, inflationary taxation’s effect on the average person is still only a political hot potato to be debated for or against. On the other side, if the finance minister says that the net burden of inflation on the common man is not more than Rs2.0 billion, then what about 341 billion taxes which are being imposed on the production economy for consumptions and for consumers. He further said that we would like to know as what exactly the tax expenditure amounts are being imposed on the different sectors encompassing 150 items. Mian Nasser Hyatt Maggo maintained that he also wondered when he was taking reports from the newspapers that Rs251 billion will be refunded/adjusted and therefore only Rs91 billion will be passed on to consumers. However, if it is so it negates the assurance of the Finance Minister that only Rs2.0 billion constitute extra incoming inflationary pressure for the common man. Maggo said that the imposition of taxes on mechanized tools for improving production and productivity in agriculture was not desirable. He also said that different sectors like Export Processing Zones, Solar and Renewal Energy, and other subsectors need a complete overview for a balanced approach exclusively made by FBR for the imposition of taxes on 150 items: oThe amendment of Customs Act, 1969 (IV of 1969) wherein under section 81, the option of “Corporate guarantee” on provisional clearance of consignments is withdrawn, does not sense to help in ease of doing business. It appears that financial costing instruments are substituted requirements of FBR. oOn the amendments of the Sales Tax Act, 1990, he said that annual turnover of Cottage Industry should have been increased and not decreased from 10 million to 8 million Rupees, that circumvent the principles of SME Policy and discourages the business to flourishing from lower levels. oOn the power in respect of change in Third Schedule-[Section 3(2)(a) Proviso] to shift the powers from Federal Government to FBR will leave the business at the mercy of FBR to exercise the powers of Federal Government as and when they would require to make impositions of the indirect taxes, which also apprehends that a new minibudget or budgets are in pipeline by authorizing FBR to exercise powers of Federal Government in respect of imposition of 17pc ST charged on taxable supplies and import of goods. oIn respect of amendments on Fifth Schedule (which provides zero-rating of ST on import and supplies), the supplies of manufacturing plant and machinery in the Export Processing Zone at 17pc ST cannot be appreciated as the Export Processing Zone remains exclusive to the imposition of any taxes and duties. oThe imposition of ST 17pc on goods exempted under section 13, if exported by a manufacturer also will create refund demands beating the concept of no taxes and duties in respect of such exempted exports. oThe imposition of 17pc ST on preparations suitable for infants, is exclusive to the consideration that the food items deemed to be exclusive of indirect taxation to contain the inflation and affordability. oThe imposition of 17pc ST on Bicycles may be a very meager amount reported in taxation expenditure and further it is a common man ride, for which the government may not like to appreciate imposition of ST on Bicycles. oThe imposition of 17pc ST on local supplies of raw materials, components, parts, and plant and machinery to registered exporters authorized under Export Facilitation Scheme, 2021 is also not desirable as it infringes upon the very name of export facilitation to import the ease of doing business. oThe imposition of 17pc ST on Petroleum Crude Oil will have negative consequences as the import of energy is already under rising global pressures. oIn respect of amendments on Sixth Schedule by withdrawing exemptions from payment of ST on import and supply to 17pc ST is also not justified such as imported samples, import of replacement goods supplied free of cost in lieu of defective goods, sewing machines of the household type, imported plant, machinery and materials by export processing zone, raw materials for pharmaceutical products, items with dedicated use of renewable source of energy like solar and wind, high efficiency irrigation equipment, green house framing and other Green House equipment, plant, machinery and equipment imported for setting up industries in FATA, appliances and items required for ostomy procedures, import of plant and machinery for the manufacturing of mobile phones by local manufacturers of mobile phones, laptop computers, notebooks whether or not incorporating multimedia kit imported, personal computers, combined harvesters up to five years old, fans for dairy farms, plant and machinery imported by Greenfield industries, sprinkler, drip and spray pumps equipment, single cylinder agriculture diesel engines, Specified machinery, equipment imported by hospitals and medical or diagnostic, raw materials imported by registered manufacturer of auto disabled syringes, items for use with solar energy, systems and items for dedicated use with renewable source of energy, specified items for promotion of renewable energy technologies or for conservation of energy, etc.