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Tag: Federation of Pakistan Chambers of Commerce and Industry

  • Business community condemns Indian illegal action

    Business community condemns Indian illegal action

    KARACHI: The business community has condemned India’s illegal actions, Indian atrocities and violation of rights of Kashmiri people.

    The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on behalf of entire business community, passed a resolution to condemn India’s illegal actions, Indian atrocities and violation of rights of Kashmiri people.

    It said that India has made breach of all international laws.

    According to resolutions of UNO, Kashmir is a disputed territory and actions taken presently by India are futile.

    “We salute to government and Armed forces for their perseverance and consistent diplomacy in raising the issue,” the FPCCI said.

    Business community of Pakistan whole heartedly expresses the solidarity with people of Kashmir and government as well.

    Pakistan should send delegations to all international forums for raising the voice against this issue, according to the resolution.

    FPCCI should inform to all business communities in the world by sending letters about ongoing Indian atrocities in Kashmir and should apprise to Indian Business community (FICCI), SAARC CCI, ICCIA and Other peace making institutions as well.

    Business community of Pakistan appreciated the role of China, Malaysia, Turkey, Saudi Arabia and OIC for condemning the atrocities and oppressions of India with Kasmiri people.

  • FPCCI urges government to resolve issues of small traders

    FPCCI urges government to resolve issues of small traders

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday urged the government resolves problems of small traders in order to keep the economy move forward.

    Engr. Daroo Khan Achackzai, President FPCCI, S.M. Muneer, Iftikhar Ali Malik, Former Presidents, Senior Vice President and Vice Presidents, Mian Zafar of Faisalabad Small Traders Chamber, Dr. Noman Idrees Butt and Business Community of Pakistan strongly support new government initiative to efforts to document the economy and expanding tax net that will definitely boost socio-economic development and economic prosperity of the people of Pakistan.

    The FPCCI always proactively engage with the government to bring foreign exchange through positive image of Pakistan and assures its support to help government on all economic fronts.

    The business community while appreciating the Prime Minister endeavor to re-track economy of the Pakistan has also requested that being the policy of the PM to solve all issues with consultation and concentration by involving real stakeholder to invite businessmen especially small traders who are suffering seriously due to some measures announced in the federal budget.

    Being the national institute of private sector the President FPCCI showed his serious concern on the problems of small traders and requests the prime minister to give us time and appointment to solve the latest burning issues on priority to keep the economy moving forward.

  • FPCCI seeks removal of protective duties on Pakistani products by Turkey

    FPCCI seeks removal of protective duties on Pakistani products by Turkey

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged Turkish authorities to remove protective duties imposed on Pakistani products.

    “Turkey should remove local preventive in PTA/FTA with Pakistan,” said Engr. Daroo Khan Achakzai, President, FPCCI in a statement on Friday.

    He said that in the past textile exports to Turkey was based on normal tariffs of imports but later Turkey imposed protective duties i.e. 18 percent which were very high, leading to decline in the earlier registered increase in the textile exports to Turkey.

    The volume of bilateral trade between both nations drastically reduced from US$1.08 billion to US$792 million after imposition of protective duty on textile.

    He appreciated the efforts of Government of Pakistan and Turkey to enter into Strategic Economic Framework (SEF) for enhancement of bilateral relations in trade, tourism, healthcare, hospitality, industry, education, housing, agriculture, aviation and banking.

    He further stated that Pakistan and Turkey has concluded nine rounds of negotiations including SEF; but so far the reports/outcome of negotiation has been not shared with the concerned stakeholders.

    He emphasized on the need of strong home-working of the government with the consultation of stakeholders for formulating list of concessionary items for FTA in trade with Turkey.

    Turkey being part of customs union with the EU, providing assumption that Pakistan may also have access to Turkish market under GSP+ status.

    This assumption was diluted due to refusal of Turkey to extend GSP+ status to Pakistan and Turkey proposed conducting negotiations on bilateral FTA between both countries.

    The President FPCCI urged the government to resolve all antidumping and non-tariff barriers before entering into SEF.

    Textile, rice, cutlery, crockery, badges, Musical instruments, surgical instruments, gloves, footwear, sports good, construction materials and leather products are the main exportable items of Pakistan that needs special market access to Turkey by reduction in tariff rates.

    He also stated that Pakistan offer Turkish for their participation in special economic zones which may add to the quality competition in specific housing, food and pharmaceutical industries.

    He also underlined the need of activation of train service with Turkey in order to reduce trade cost and transit time as trade through sea is not cost effective for both the nation.

    He further added that Turkey should promote trade directly with Pakistan instead of third countries like importing of surgical items from Germany that are originally manufactured in Pakistan.

    He also underlined the need of simplification of visa procedure for genuine businessmen and traders. He further added that Pakistan and Turkey both are active members of ECO, Developing eight and Organization of Islamic Countries (OIC). FPCCI will take up the above issues in the meeting between FPCCI and TOBB in the forthcoming meetings, he added.

  • Income from Dubai-based properties declarable, not taxable in Pakistan: FBR

    Income from Dubai-based properties declarable, not taxable in Pakistan: FBR

    KARACHI: Federal Board of Revenue (FBR) has said that income generated from Dubai-based properties is declarable but not chargeable to tax in Pakistan.

    Replying to query raised by business community at a seminar organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Asset Declaration Ordinance, 2019, said a statement on Friday.

    In a query about rental income originated from Dubai-based properties IR CRTO team replied that double taxation treaty overwrote the domestic law and the UAE clearly stated that tax on rental income is charged by the country where income is originated hence rental income from Dubai-based properties are declarable but not chargeable in Pakistan.

    During the awareness session, the IRS CRTO team led by its Chief Commissioner Shafqat Ali Kehar and consisting of Maqsood Jehangir, Commissioner IR Zone-IV, CRTO and Kashif Hafeez, Additional Commissioner IR Zone IV CRTO Karachi, made a multimedia presentation and elaborated salient features of the Assets Declaration Ordinance, 2019 and gave replies to various queries, ambiguities etc., as raised by the participants.

    Regarding a query on Power of Attorney, it was replied that all immovable properties, which were transferred on power of attorney, would be declared as Benami property under the ADO, 2019 as the objective of the Scheme was to allow inclusion of non-documented economy in taxation system and to promote economic revival and growth by encouraging tax compliance.

    The IR Team informed, “ADO, 2019 has been announced with the aim not to generate revenue but to document the economy in the background of Financial Action Task Force (FATF); revival and growth of economy through tax compliance.

    The Team added, “ADO, 2019 is also applicable in undisclosed Assets and expenditures and sales and provides immunity from proceeding Under Section 111 of ITO 2011; the deadline will not be extended beyond 30-06-2019 ; tax can be paid in installment subject to default surcharge; Gold Jewelry, bearer prize bonds, securities, etc., are not required to declare, open plots, local immovable property etc., can be declared at higher cost of acquisition or 150 percent of FBR value or 150 percent of DC Value ; availability of carry forward facility of stock on 30-06-2018 to 2018-19 etc.

    Engr. Daroo Khan Achakzai, President (FPCCI) hailed the Asset Declaration Ordinance (ADO), 2019 and termed it as a right step in the right direction with the objective to bring the tax evaders under the tax net; enhancing the country’s revenue base; documentation of economy; arresting the size of ever increasing black economy; mobilize resources and to bring dead assets in the mainstream of economy and make them functional.

    He recalled that during the past six years, tax-to-GDP ratio has hovered between 9 percent in 2013-14 and 11.4 percent in 2017-18 to 10.8 percent in the current year 2018-19

    The FPCCI Chief hoped that the government efforts to raise tax-to-GDO ratio to 12.6 percent in the next year (2019-20); documentation of economy and broadening of tax base would yield fruitful results as no economy can function without sufficient revenue collection and its thin tax base consisting of about two million assessees or 1 percent of total population has resulted in higher tax rates which provides sufficient incentive for tax evasion and corruption.

    The FPCCI President informed that the ADO, 2019 had granted special treatment to the real estate sector and appealed to take advantage of tax amnesty scheme and document benami/ undeclared/ under-declared property and concede assets against concessionary tax payments.

    The participants expressed their problem in filing of asset declarations due to non / partial functioning of FBR’s portal (IRIS).

    They proposed for allowing Provisional Declaration of Assets by 30th June, 2019 and elaborated that the Scheme was announced only 45 days ago and as such the declarants who are not in a position to deposit cash due to liquidity crunch and filed declaration before 30-06-2019 may be treated as provisional and the assessees may be allowed to deposit the cash in bank accounts within 90 days.

    They also proposed that at least 15 days may be allowed to incorporate or feed the declaration data in relevant Income Tax and Sales Tax Returns / profiles particularly when IRIS is not fully operationals and as such it will not affect at all the last date of declaration of assets.

  • Prime Minister assures business community of considering sales tax zero rating

    Prime Minister assures business community of considering sales tax zero rating

    KARACHI: Prime Minister Imran Khan has assured business community of considering restoration of sales tax zero rating for export sector.

    A delegation of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) met Prime Minister Imran Khan on Thursday in Islamabad to discuss anomalies in the Finance Bill 2019.

    On FPCCI demand of restoration of SRO 1125(I)/2011 allowing five export oriented export sectors at zero rate, the prime minister assured to consider it sympathetically, said a statement issued by the FPCCI.

    The FPCCI delegation was led by S.M. Muneer, leader of the business community and Former Chief Executive TDAP and Former President, FPCCI and consisting of Aqil Karim Dhedi; Engr. Daroo Khan Achakzai, President, FPCCI and Zubair F. Tufail, Convener of the FPCCI Budget Advisory Council – held a detailed meeting with the Prime Minister Imran Khan and Abdul Hafeez Shaikh, Advisor to the PM on Finance which lasted for 2 hours and discussed / briefed them about the hardships of the business community emanated from some harsh measures of the Finance Bill, 2019 that would give serious blow to trade and industry, especially export sector in the wake of exorbitant policy rate of 12.25 percent coupled with the massive devaluation of Pak-Rupee versus dollar in the last few months withdrawal of zero rated regime from export industrial sectors etc.

    The FPCCI delegation particularly emphasized and discussed ten major demands out of which eight proposals have been accepted by the Prime Minister, the major one such as doing away with raid on any premises; reduction in tax rates for service sector; routing taxation and business related policy through Federal Government/Cabinet instead of FBR, as directed by the Supreme Court; lack of personal interaction and minimal possibility of abuse of discretionary powers by the tax officials; conduction of audit once in a three years etc.

    Moreover the issues of retailers, wholesalers and real estates were also discussed in details.

  • FPCCI may opt harsh decisions against proposed budgetary measures

    FPCCI may opt harsh decisions against proposed budgetary measures

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on has announced to take harsh decision against duty and tax measures proposed through Finance Bill, 2019.

    At a pressing briefing on Wednesday, Engineer Daroo Khan, President, FPCCI said that the decision would include closure of business and trade activities in protest.

    He said that the business community would share its reservations with the government. If the government declines to accept demands then option to protest is open, he added.

    The FPCCI president said that budgetary measures had would create hardship for all including business community as well as general public.

    The national chamber has identified many reservations on the budget 2019/2020. The apex chamber has constituted a committee on the Finance Bill, 2019.

    Engr. Daroo Khan demanded the government to restore sales tax zero-rating for export sector. Further, he pointed out that hike in tariff of gas and electricity would also make difficult for business to continue.

    He suggested the government that if it had been decided to abolish the zero rate regime then there must be assurance of releasing refunds.

    He also demanded the government to restore provision of audit once in three years as Finance Bill proposed to empower tax officials to conduct audit of a taxpayer any or every year.

    S M Muneer, leader of business community, however, said that the business community would not protest without meeting with government authorities.

    He said that a delegation of FPCCI would hold talk with Dr. Abdul Hafeez Shaikh, advisor to Prime Minister on Finance and Revenue on June 20.

    Muneer said that massive depreciation of Pak Rupee had created difficulties for businesses.

    Zubair Tufail, former FPCCI president, said that the proposed budget would encourage smuggling of goods.

    He said that banks should be asked for instant processing of refunds in case the zero-rating was abolished.

    Mirza Ikhtiar Baig, business leader, said that the business community was meeting with people in the government and opposition.

    He said that a delegation of Pakistan Peoples’ Party headed by its chairman Bilawal Bhutto Zardari was visiting FPCCI on June 22, 2019. But we are meeting first with the government tomorrow (June 21), he added.

  • FPCCI expresses concerns over policy rate hike

    FPCCI expresses concerns over policy rate hike

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over recent significant rise in key policy rate by State Bank of Pakistan (SBP).
    In a statement on Wednesday Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) showed his serious concern over the hiking of policy rate by another 150 basis points in view of prevailing inflation, devaluation of currency and twin deficit in Pakistan.
    He added that SBP continues to operate a tight monetary policy despite the clear evidences that this policy strangulates investment and hampered the economic activities in Pakistan in Pakistan.
    He underlined that the IMF bailout package will further create burden on poor segment of society in terms of rising utility prices which will ultimately increase inflation in the economy.
    At present, every Pakistani possess a debt of one lac fifty nine thousands rupees.
    The President FPCCI termed the contractionary monetary policy as an anti-investment policy which has declined the economic activities in the first ten month of the current fiscal year due to declining of large scale manufacturing and service sector.
    He indicated that 12.25 percent policy rate is very high compared to regional economies like India 6.0 percent, China 4.35 percent, Sri Lanka 9.0 percent, Thailand 1.75 percent, Indonesia 6.5 percent, Malaysia 3.00 percent etc.
    While commenting on the devaluation of currency, he stated that the rising of exchange rate will increases the prices of imports particularly petroleum products which comprises 30 to 35 percent import bill of Pakistan.
    He suggested the government to intervene in the economy for currency stabilization and control of inflation. He said that the present inflation rate is 7.0 percent which is high compared to last year same period 3.8 percent; but this inflation is cost push inflation which can’t be controlled through demand management policies.
    The major cause of rising inflation in the country is high cost of doing business particularly utility prices, increase in the prices of industrial inputs and shortage of essential items of daily necessity.
    The Government should focus to increase the demand for credit by declining interest rates and make easy access to finance. Globally, the aim of monetary policy is to protect the value of the currency in co-ordination with the fiscal policy in order to achieve the objectives of macro-economic stability with constraining inflation and expansion of private sector investment, he added.
    The President FPCCI further stated that the government should create its own fiscal space for financing its expenditures instead of borrowing from SBP and other institutions. During the first ten month of year, there was an expansion in private sector credit, but is largely attributed to working capital due to rising of input prices.
    This private sector credit should be expanded to agriculture and industrial sector which are showing declining growth trend, he suggested.

  • Tax amnesty scheme step in right direction: FPCCI

    Tax amnesty scheme step in right direction: FPCCI

    KARACHI: The members of Federation of Pakistan Chambers and Commerce of Industry (FPCCI) have unanimously declared the recently announced tax amnesty by the present government is step in right direction.

    The FPCCI held an emergent meeting of its members at its head office Karachi on Saturday under the chairmanship of Abdul Rauf Mukhtar, Acting President of FPCCI and reviewed/discussed the new tax amnesty scheme namely “Asset Declaration Scheme 2019” as announced by the PTI government which has come in to effect through a Presidential Ordinance.

    The meeting was attended by S.M. Muneer, leader of the Business Community and Former President of FPCCI; Dr. Mirza Ikhtiar Baig, Sr. Vice Presidents; Vice Presidents FPCCI Arshad Jamal, Muslim Muhammadi, Waqar Mehmood Khan and Noor Ahmed Khan, Zubair Tufail, Former President FPCCI, Former Sr. Vice Presidents FPCCI Khalid Tawab, Syed Mazhar Ali Nasir and Aamer Ata Bajwa, Former Vice Presidents Hanif Gohar, Shakil Dhingra, Akbar Abdullah and other representatives of trade and industry.

    FPCCI acting president Abdul Rauf Mukhtar termed the scheme as a right step in the right direction with the objective to bring the tax evaders under the tax net, enhancing the country’s revenue base, documentation of economy, curtailing the size of ever increasing black economy and to bring dead assets in the mainstream of economy and make them functional.

    He also urged the government to ensure complete secrecy and confidentiality of the declarants’ data to enhance the confidence of tax payers in the scheme- a pre-requisite for success for any scheme.

    Highlighting salient features of the scheme, the FPCCI Acting President informed, “The rates of tax imposed on undisclosed assets, sales and expenditures would be 4 percent on all assets; rate of tax would be 1.5 percent on domestic immovable properties; rates of tax would be 6 percent on foreign liquid assets not repatriated; rate of tax would be 4 percent on unexplained expenditure and rate of tax would be 2 percent on undisclosed sales.”

    The participants termed the 4 percent tax rate as attractive for legalisation of black money held in the form of expenditures, sales and assets including foreign assets; however, they said that duration of the scheme is relatively less as the scheme would offer a period of 45 days to people for declaration of their undeclared assets along with payment of taxes until June 30, 2019.

    They added that the PTI government announced its first tax amnesty scheme for whitening of undisclosed expenditures, sales and assets including foreign assets at nominal tax rates and were of the unanimous opinion that the time period of the scheme should be extended beyond June 30, 2019 up to December 31, 2019.

    They appreciated the FBR’s move to issue the scheme in Urdu language as well as in simplified declaration form.

    They were of the opinion that legalization of undeclared assets at 4 percent is very attractive although the rates are comparatively higher as compared to last amnesty scheme.

    They added for the first time lucrative rate of 1.5 percent has been offered for real estate sector.

    They, referring to the size of the parallel economy were of the opinion that resolution of real state and bearer instruments issues were necessary to clip the wings of grey economy otherwise these would be surfacing periodically in future and the government would have to offer amnesty scheme again and again.

    They also lauded government efforts to broadening the tax base and enhance tax to GDP ratio as it was one of the lowest in the world.

    The participants were of the opinion that this time the scope of the scheme would be for those avenues which were not covered in earlier ones like sales tax and benami assets especially benami bank accounts.

    The members urged the government to publicize the scheme rigorously because that one may who may not be aware the penalties associated with it for not availing the scheme, including confiscation and imprisonment, and that this is the very last chance to avail it.

    They also proposed that the limit of Rs5 million for gold jewelry be withdrawn and the condition of depositing cash in hand in bank to avail the scheme be also removed.

  • FPCCI invites FBR chairman for budget proposals discussions

    FPCCI invites FBR chairman for budget proposals discussions

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has invited Shabbar Zaidi, Chairman of Federal Board of Revenue (FBR) to discuss budget proposals.

    A statement issued on Tuesday said that the President FPCCI Engr. Daroo Khan Achakzai alongwith Abdul Waheed Sheikh, Ijaz Khan Abbasi, Qurban Ali and Shireen Arshad Khan, Vice Presidents of FPCCI visited the office of Shabbar Zaidi congratulating him on assuming the charge of Chairman FBR.

    During the meeting the President FPCCI discussed various measures and proposals particularly for enhancement in number of tax payers and to increase their confidence level to achieve the set targets of revenues.

    Engr. Daroo Khan Achakzai further said that misuse of powers by the tax authorities is creating trust deficit and lack of confidence.

    The FPCCI Chief hailed the prompt decisions taken by the FBR’s Chairman in facilitating and providing relief to the taxpayers such as “Suspension of raid on any premises of any existing taxpayer without prior approval of Member IR – Operation and Chairman FBR”.

    Moreover, the FPCCI President also appreciated the Chairman FBR for not suspending any Active Taxpayer from Active Taxpayer List unless there is personal interaction with the assessee 24 hours before suspension and monitoring himself the list of all cases of suspension. The President of FPCCI also lauded Shabbar Zaidi, Chairman, FBR for not freezing bank account without prior intimation and notice to the bank account holder. The FBR Chief further said that the real estate is fast growing sector of the economy and FBR will devise various reforms. The tax amnesty scheme is also under process and will be announced soon, he stated.

    The President FPCCI Engr. Daroo Khan Achakzai invited the Chairman FBR to visit FPCCI Headquarter at Karachi and its Capital Office Islamabad to discuss FPCCI’s budget proposals and to share vision to revamp the tax system and machinery which is now the need of hour to be shifted in effective automated system to facilitate the taxpayers.

    The Chairman FBR agreed to visit the FPCCI soon to get feedback and first-hand information from FPCCI members and apprised them of FBR’s stance / point of view.

  • President asks business community to pay all taxes for curtailing budget deficit

    President asks business community to pay all taxes for curtailing budget deficit

    President of Pakistan, Dr. Arif Alvi, has called upon the business community to fulfill their tax obligations, emphasizing that this would play a pivotal role in reducing the budget deficit and enabling greater allocation of funds for development projects. His remarks came during a meeting with a delegation from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office, Lahore, in Islamabad on Monday.

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