Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has organized a seminar for using Amazon platform.
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FPCCI opposes new SOPs by Sindh government
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has voiced concerns over the enforcement of new Standard Operating Procedures (SOPs) for COVID-19 prevention by the Sindh government.
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Section 203A to result in corruption, harassment: FPCCI
KARACHI: Nasir Khan, acting president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that the government has not incorporated practical, business-friendly and growth-promoting proposals of FPCCI in the budget; sent well before the Budget 2021-22.
He maintained that it is a gross negligence on government’s part to ignore the apex representative body of Pakistan’s business, industrial and trade community.
Nasir Khan also criticized the Section 203A of Income Tax Ordinance, 2001 introduced through the budget 2021/2022, which empowers and expands the discretionary powers of FBR.
He added that it will only result in increase in corruption and harassment. He added that although Section 203A has been amended through introduction of slabs; but, still FPCCI is of the view that powers to arrest and prosecute will create fearful and discouraging environment for SMEs.
He said that Section 203A is equivalent to NAB’s law and provision should be added to make FBR accountable; if it cannot establish any corruption or tax evasion. This Section 203A also violates basic rights and the honourable Supreme Court should intervene to protect the businessmen of the country.
Acting President of FPCCI also pointed out that a blanket exemption for FED has been given to FATA and PATA; without surveying and quantifying the genuine needs and total demand of FATA and PATA population.
This will render industries in adjacent regions and all over the country uncompetitive in comparison to those industrial units which are exempt from FED in FATA and PATA. He added that there is a strong possibility that industrial units may exploit the FED exemption and utilize it to produce for regions other than FATA and PATA. He also added that there must be a strict mechanism to avoid misuse of the FED exemption and subsequent prosecution.
Nasir Khan also expressed his shock that FPCCI sent its recommendations on tax system reforms and simplification of tax rates to Prime Minister and he instructed FBR to have a consultative process with FPCCI; but, FBR did not start that process. He also mentioned that Shaukat Tarin promised that the budget will not be made without consulting FPCCI; but, unfortunately, that promise was also not kept.
Nasir Khan has suggested that corporate courts should be established in the country to counter and balance the weak policies of the successive governments and ensure protection to SMEs.
Nasir Khan mentioned that surprisingly FBR has made a banker the head of its Budget Anomalies Committees; who has no understanding of trade, SMEs and economic affairs.
Zakaria Usman, Convener Budget Advisory Council of FPCCI, said that the government should ensure consistency of policies to encourage investment in the country.
FPCCI demands that the Honourable Prime Minister of Pakistan must intervene and resolve the issues that are anti-business and anti-growth. FPCCI is ever-ready to resolve all outstanding issues through discussion and a mutually-beneficial dialogue.
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FPCCI demands withdrawal increase in duty, taxes on CNG sector
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday demanded the government of withdraw its decision of increasing duty and taxes on CNG sector.
In a statement FPCCI President Mian Nasser Hyatt Maggo said that the sales tax on LNG for CNG sector has been increased from 5 per cent to 17 per cent – while customs duty of 5 per cent has also been imposed. “Given that CNG is expensive and the survival of this business is in jeopardy. This decision should be reversed immediately,” he demanded.
He said that the gas crisis is caused by poor management, bad decision-making, and lack of vision. After Sindh, gas is being cut off across the country; which is unacceptable. This will cause huge losses to the business community and the public alike; affecting businesses and reducing production and exports.
Addressing an emergency press conference, FPCCI’s President said that the entire country was in the grip of energy crisis due to the badly-timed import of LNG and CNG sector.
It was the worst time to go for yearly repair and maintenance of the LNG terminal. As a result, it has been decided to generate electricity from furnace oil; which is an expensive option.
The government neither imports gas itself; nor allows the CNG sector to import – which is out of sound mind.
Ghiyas Abdullah Paracha – Group Leader, All Pakistan CNG Association – said that the policies of the energy sector were not in line with the ground realities. The crisis will continue until the CNG sector is allowed to import its own gas. Gas companies are destroying people’s businesses and taking away jobs. If we import our own gas, the load shedding will end and the government will generate Rs. 82 billion; but, this is not acceptable to a few bureaucrats. He further added that the CNG sector in Punjab and Sindh is using imported gas; so, it has nothing to do with the reduction in domestic gas production; nor does it have any justification to cut off gas.
Khalid Latif – Chairman, All Pakistan CNG Association – said that Rs. 450 billion have been invested in the CNG sector; but, the future is bleak. Hundreds of thousands of workers have been displaced from the CNG sector; but, they have been brought to the brink of disaster.
FPCCI demanded that the government should take steps to rehabilitate the sector by revoking the decision to impose additional taxes and ensuring the availability of environmentally friendly and cheap fuel to the people; so that, pollution and fares do not increase and millions of jobs can be saved.
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FBR manipulates budget 2021/2022, proposals not to provide relief to business community: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has alleged Federal Board of Revenue (FBR) for proposing and manipulating the budget 2021/2022, as the proposals will neither provide relief to business community nor it will help in economic growth.
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FPCCI calls for broadening of tax base to push GDP growth
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday advised the government to reduce tax rates and broaden the tax base for achieving GDP growth at six percent during next two years.
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Pakistan customs assures early disposal of valuation ruling issues
KARACHI: Pakistan Customs has assured business community of early resolution of pending valuation ruling issues on priority basis.
Director General Customs Valuation Ms. Shahnaz Maqbool assured this at a meeting held with members of Pakistan Federation of Chambers of Commerce and Industry (FPCCI), a statement said on Thursday.
According to the statement the FPCCI and Pakistan Customs had agreed in principle to form an advisory committee to resolve issues pertaining to valuation through consultation.
DG Customs Valuation Ms. Shahnaz Maqbool in a meeting held at Federation House agreed with the various recommendations of Shabbir Mansha Churra – Convener, Central Standing Committee on Customs, FPCCI – and his team.
The DG also assured of expeditious disposal of cases pending for many years related to valuation rulings. Former President FPCCI Mian Anjum Nisar; VPs FPCCI Hanif Lakhany and Adeel Siddiqui; Former VP Khurram Ejaz and others were also present on the occasion.
Shabbir Mansha Churra drew the attention of DG Valuation to the growing issues related to valuation rolling; and, said that for strong liaison between FPCCI and Customs, it was necessary to form a Joint Advisory Committee.
The committee will have representatives of the concerned stakeholders/associations; and, their legal and business experts.
Mian Anjum Nisar, Former President FPCCI, pointed out that the business community was facing severe problems due to delays in valuation ruling and because of very old valuation business community have to pay extra charges; although, the valuations have come down due to the reduction in the prices of some items.
But, the business and trade community still have the old rates and it calls for a swift and comprehensive process to update valuation ruling.
FPCCI demands that businesses that are in appeals with customs valuation should be facilitated by the department on priority basis and resolutions offered.
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PLGMEA disowns FPCCI advertisement
KARACHI: Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) on Tuesday disowned itself from an advertisement issued by the country’s apex trade body.
PLGMEA Chairman Danish Khan has strongly condemned the advertisement by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and said that the apex trade body had used the name without the permission.
PLGMEA has nothing to do with the advertisement and no such opinion. “We are free to express our position without using the platform of FPCCI,” he said.
The FPCCI has acted unethically by using the name of the Leather Garments Association members without the permission of PLGMEA.
He said that the Federation of Pakistan Chambers of Commerce is the apex body of the business community and such high-handed tactics do not beautify such a credible institution. Such measures have tarnished the image of the institution.
Danish Khan said that PLGMEA was not part of the advertisement and the position presented in it was personal to the FPCCI.
Chairman PLGMEA demanded FPCCI to apologize from PLGMEA for their biased advertisement and refrain from taking such steps in future. PLGMEA reserved the right to take legal action on such issues.
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FPCCI urges tax rate cut in budget to mitigate coronavirus losses
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday sought sizeable cut in tax rates in upcoming budget 2021/2022 to mitigate industrial losses due to coronavirus.
FPCCI’s Businessmen Panel Chairman Mian Anjum Nisar, in a statement, said that the government will have to make visible reduction in taxes in the budget 2021-22 to help revive the businesses in post-corona economic strategy.
He recommended the government to take serious steps for bringing down cost of production, which is very high due to local currency depreciation, rising power tariffs, costly fuel and escalating import duties on inputs.
While talking to a traders delegation here on Monday, Mian Anjum Nisar, who is also former president of FPCCI, said that like the domestic industry Covid-19 crisis has also forced the global investors to put their new investment plans on hold. He said that there is no visible improvement in employment even after the business activities were allowed and countrywide lockdown eased. The small and medium industries (SMEs) -the main providers of jobs are still struggling because of lack of funds and demand.
Mian Anjum Nisar asked the government to take concrete steps to attract foreign investment, saving the livelihood of millions of workers associated with various sectors, as Foreign direct investment (FDI) has kept falling during the current fiscal, declining by 35 percent at the end of the third quarter, reflecting no improvement in the situation for investors.
Quoting the SBP data, he said that the FDI fell by 35% to $1.39 billion during July-March FY21 compared to $2.15 billion in the same period of last fiscal. The inflow in March was just $167.6 million compared to $278.7m in the same month of last year — a decline of 40%.
While the poor inflows of FDI have continued for more than five years, the government remained unable to offer anything new to attract foreign investors this year, mainly due to the coronavirus pandemic.
Pakistan has reopened its economy from the lockdown. Majority of the sectors in manufacturing and almost entire agriculture sector are operational now. He said that foreign direct investment figures of the previous year reflected the same poor scenario.
The BMP Chief said that Pakistan has succeeded to improve its balance of payments with record remittances in FY20. He said that Pakistan can be a potential market for foreign investors, who still have plans to make fresh investment in the country, but they have continued to wait for the return of economic stability. He highlighted uncertainty in the rupee-dollar parity as one of the major concerns of foreign investors.
He said a slowdown in the economy had badly impacted business confidence. It is must for the authorities concerned to first create an enabling environment for the local businessmen desiring to make new investment. He said that the return of stability to the financial health of the firms is a must to attract new foreign investment in Pakistan.
Resenting frequent increase in power tariff the FPCCI former president strongly opposed the government plan of increasing base electricity tariff across the country by a cumulative Rs5.36 per unit in three phases over the next two years.
Mian Anjum Nisar said the constant increases in energy rates on the behest of the International Monetary Fund would make the Pakistani products uncompetitive in the international market.
He said the regular attempt of economic managers to increase oil prices along with the hike in power and gas tariffs will ultimately harm the government’s overall move of reducing the production cost in the country announced by the prime minister in various phases.
Mian Anjum Nisar said it was imperative to make power and gas tariffs for domestic, as well as export sectors compatible with the tariff being applied in regional and neighbouring countries.
He said that with a view to save the economy from the impacts of the slowdown due to the COVID-19 the government should offer out of the box solution for a cash-strapped SMEs, which represents more than 90 percent of around 3.2 million business enterprises in Pakistan, contributing 40 percent to the GDP, employing more than 80 percent of non-agricultural workforce, and generating 25 percent of export earnings.
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FPCCI urges tax authorities to facilitate edible oil manufacturers
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the tax authorities to facilitate edible oil manufacturers by excluding from a notification related to commercial importers.
According to a statement issued on Saturday FPCCI Vice President Nasir Khan strongly condemned the inclusion of Edible Oils in the S.R.O. 1190(I)/2019 issued by the Federal Board of Revenue (FBR).
As a matter of principle, this SRO should have been restricted to commercial importers instead of including edible oil manufacturers. Therefore, one of the major disruptions this SRO has caused is that edible oil manufacturers have massively decreased their imports and major imports have been taken over by the commercial importers.
Nasir Khan has noted that this notification/SRO has resulted in a straight 10 percent increase in the cost of importing edible oils in the country. Contrarily, during the same period, India and Bangladesh have reduced the cost of importing edible oils in their countries by 10 percent and 4 percent through providing various relief measures to edible oil manufacturers.
Moreover, Nasir Khan has said that instead of providing billions of rupees to Utility Stores Corporation (USC) to sell subsidized edible oils, the federal government should facilitate edible oil manufacturers. In that manner, they will be able to cut down the edible oil prices; and, provide better and greater relief to consumers in the entire country than the USC could ever achieve. This illogical and illegal inclusion has caused more than 10 percent increase in edible oil prices due to hoarding by commercial importers.
FPCCI demands immediate withdrawal of inclusion of edible oil manufacturers from above-mentioned SRO to help edible oil manufacturers to avoid bankruptcy and continue to play their role in economic growth and employment generation.