LAHORE: Punjab Minister for Finance Makhdoom Hashim Jawan Bakht Thursday said that the federal and Punjab governments presented growth-oriented budgets.
He said that Rs 560 billion had been allocated for development programme in Punjab budget, which was 66 per cent higher than the previous budget.
He said that the government believed in consultation and facilitating the business community.
He was addressing a two-day all Pakistan Chamber’s post-budget convention under the auspices of the Lahore Chamber of Commerce & Industry (LCCI) at a local hotel. LCCI President Mian Tariq Misbah presided over the convention, while Senior Vice President Muhammad Nasir Hameed Khan, Vice President Tahir Manzoor Chaudhry, presidents, office-bearers and representatives of 25 chambers of commerce and industry addressed the convention.
The minister said that the provincial government would continue to facilitate the business community by ensuring provision of tax relief and incentive packages for various sectors of economy especially those export oriented.
Hashim said that the Pakistan Tehreek-e-Insaf (PTI) government was very much focused on human resource development and a number of solid initiatives had been taken in social sector for well-being of the common man.
The government was also putting in place effective and comprehensive measures for infrastructural development, he said. Hashim added, “We believe in equal and composite development across Punjab with greater attention towards south Punjab which has been deprived of its due share of development and budgetary allocations for long.”
The chambers issued a joint declaration to address the genuine reservations of the business community before the Federal Budget 2021-22 is approved.
The participants in the convention urged the government to take prompt action on the recommendations of the convention’s declaration in order to create conducive business environment and for quick revival of economy:
They demanded that a formal announcement and confirmation should be made by the government to withdraw the proposal of adding clause 203(A) in the Income Tax Ordinance. The proposal of imposing exorbitant fines on the importers under section (28) 156 of the Finance Bill 2021 if they for any reason are not able to complete the paperwork for redemption of their shipments should be withdrawn.
They said that the steep increase in the taxation target in the Federal Budget 2021-22 should not in any way overburden the existing taxpayers and should be met by expanding the tax base. In addition to the sales tax refunds, income tax refunds should also be paid through the new promised centralized automated refund system.
The participants said that the energy tariff for all sectors of the economy should be capped at Rs 7.5 cents/unit to reduce their cost of doing business and enhancing their export competitiveness, adding that special measures should be taken in the Federal Budget 2021-22 for the provision of interest-free credit to SMEs/ small traders/ single shutter shops without any collateral requirement.
They said that sizeable allocation should be done in Federal Budget 2021-22 for i) establishing state of the art testing labs on the outskirts of major cities across the country and ii) up-gradation of existing labs to serve the export needs to Industry.
“To ensure adequate supply of vital raw materials and other essential components (spare-parts and machinery), commercial importers should be allowed to import against advance payments up to US$20, 000. The 3% further tax on supplies through unregistered persons should be abolished”, they added and said that the tax exemptions for industries in Federal/Provincial Administered Tribal Areas (FATA/PATA) should be reviewed as their misuse of these exemptions are hampering the competitiveness of industries in other parts of country.
All the chambers asked the government top exempt them and other trade bodies of the Income Tax and Property Tax.
They said that all the industries which are exporting 80-100% of their production should be given sales tax adjustment.
The participants said that there should be no dual taxation on purchase of industrial plots in small industrial estate Jhelum.
They said that the issue of non-supply of gas to Jhelum small industrial estate despite the payment should be resolved on urgent basis.
They said that State Bank should offer grants to hospitality sector as it is hit badly by COVID-19.