Economy

FPCCI shows concern on Economic situation

Karachi, April 10, 2019: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) showing serious concern about the economic situation and alleged the federal government for not taking on board for policies.

Addressing a press conference here on Wednesday at Federation House, Engr. Daroo Khan Achazai, and President FPCCI regretted that as per past practice, the Government did not undertake the consultation sessions with FPCCI regarding the upcoming Federal Budget 2019-20. This practice was a useful and effective measure for coming up with budgetary proposals based on input from the real stakeholders. However, FPCCI has done its homework, he added.

While discussing the current economic situation, Engr. Daroo Khan Achakzai President FPCCI showed his serious concern over the rising policy rate, an increase in petroleum product prices, a decline in foreign investment, devaluation of Pakistan Rupees, etc. 

He stated that the government is presently facing a shortage of tax revenue and projected that economic growth rate may be declined to 3.7 percent which may enhance unemployment rate and poverty in Pakistan. 

He informed that as per practice, FPCCI formulated Budgetary Advisory Council who prepared Federal Budget Proposals with the consultation of members’ trade bodies. 

The objectives of FPCCI Budget proposals are revamping the taxation system, documentation of economy, employment generation through Industrialization, Promoting a responsive and equitable taxation system, infrastructure development and trickle down effect of the fiscal space to the grass root level, Daro said.

He added that the government should announce one time another amnesty scheme which should allow the stakeholders to declare their domestic and foreign assets at minimum rates. 

“The Government should not also ensure that after the declaration of assets under the amnesty scheme the Federal Board of Revenue (FBR) will ask about the source of income nor they will conduct any audit or inquiry”, he added.

Moreover, FPCCI proposed to reduce the sales tax rate gradually from current 17 percent to single digit, to abolish all duty and taxes on the imports of all machinery, to reduce the further tax on an unregistered person from three percent to one percent and imposition of taxes on final goods. 

He also suggested establishment for export warehouses at the border for enhancement of trade with neighboring countries and bringing the agriculture and service sectors into tax net proportionately. He also proposed to increase the education and the health budget for improving human capital in Pakistan.

Zubair Tufail, Chairman FPCCI Advisory Committee on Federal Budget and Former President FPCCI also emphasized on the early issuance of promissory notes and clearance of all refunds including income tax and DLTL, etc. 

He suggested that the government should use the data of domestic and international travelers for identifying potential taxpayers and bringing them into the tax net. He underlined the need for promotion of SMEs culture in Pakistan and suggested that the government should formulate a mechanism for monitoring consumer goods prices. 

While discussing China, Pakistan FTA, he proposed that China should give additional market access to agricultural products of Pakistan. He also recommended the imposition of a transit trade fee on Chinese trucks as per international practices under CPEC. 

He also requested the government to stop harassment of the business community by NAB and FBR in order to improve the business climate of Pakistan.

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