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Tag: FPCCI

  • FPCCI expresses concerns over abolishing zero-rate regime

    FPCCI expresses concerns over abolishing zero-rate regime

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious concerns over rumors regarding abolishing zero-rated for export sector.

    Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), S. M. Muneer Former President FPCCI and Iftikhar Ali Malik, Former President FPCCI & Sr. Vice President SAARC-CCI show their serious concern over the speculation of withdrawal of Zero Rated Facility for the five Key exports sector in the forth coming budget.

    They said that the withdrawal of zero rating facility of  key five sector i.e. value added textile, leather, carpet, surgical instruments and sports goods will decline further exports of Pakistan which is confronted with many challenges.

    These five sectors contribute 70 percent in exports of Pakistan and contribute significantly in earning foreign exchange and providing employment to skilled and unskilled labor force.

    They further stated that the refunds claims of exporters amounting to Rs300 billion is already pending with FBR creating liquidity crunch and hurdles to new investment.

    Due to uncertainty in economic environment, the investors are reluctant to make investment in Pakistan. Moreover, the devaluation of Pak. Rupees more than 30 percent in last one year does not impact positively on the enhancement of exports.

    They added that the withdrawal of this facility will increase cost of doing business due to 17 percent sales tax and high utility cost, as Pakistan’s exports is already facing a tough competition in international market due to enormous facilities given by the regional countries to their exporters.

    They further stated that government should find new avenues for enhancement of its revenue instead of damaging the exports sector which is already on a decline. They further suggested that the government should facilitate the industrialization in Pakistan particularly the agro-based and value added industries for the enhancement of exports.

  • 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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  • FPCCI praises FBR chairman for limiting powers of IR officers

    FPCCI praises FBR chairman for limiting powers of IR officers

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has praised the newly appointed chairman of Federal Board of Revenue (FBR) for limiting powers of Inland Revenue officers in tax recovery through bank account attachment.

    Engr. Daroo Khan Achakzai, President FPCCI in a statement on Saturday hailed the directive of the newly appointed Chairman FBR Shabbar Zaidi, for not attaching the bank account of a taxpayer unless his Chief Executive Officer / Owner is informed at least 24 hours prior to attachment and approval of the Chairman FBR is obtained.

    He said that the FPCCI had been clamoring for long for keeping a deterrent against the misuse of discretionary powers by the tax officials for recovery of arrears and attachment of bank account under Section 48 of Sales Tax Act, 1990 and Section 140 of Income Tax Ordinance 2001.

    The FPCCI Chief elaborated that there were increased incidences of bank account attachment and other serious coercive measures taken by the tax officer under the garb of the Section 48 for recovery of arrears and such abuse of powers were creating trust deficit and lack of confidence of taxpayers in law which are pre-requisite for success of any scheme.

    Achakzai hoped that the directive would address the complaints of business community about the unnecessary attachments of the bank accounts for recovery of the disputed accounts from the bank accounts of the taxpayers without fulfilment of legal process. “In many cases accounts have been attached without prior notice of the CEO / principle officer owner of the business community,” he added.

  • FPCCI flays rise in air fares on domestic routes

    FPCCI flays rise in air fares on domestic routes

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has flayed hike in air fares by domestic airlines.

    In a statement issued on Thursday Engr. Daroo Khan Achakzai, President FPCCI and S.M. Muneer, Leader of the Business Community, Former Chief Executive TDAP and Former President of FPCCI showing concern on continuation of abrupt hike in the air fares on all the domestic routes have urged the Aviation Minister, Ghulam Sarwar Khan to initiate a regulatory body to monitor air fares and evolve a mechanism for this purpose.

    They elaborated that in the absence of any mechanism or check and balance to control the price hike, the airlines have been arbitrarily increasing the airfares on domestic routes.

    They added that the exorbitant hike in the air fare had badly caused anxiety amongst the commuters particularly the business community who also frequently travel on the domestic route for promotion of trade and industrial activities in the country.

  • FPCCI hails appointing professional for FBR top post

    FPCCI hails appointing professional for FBR top post

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday praised the government for appointing a professional as chairman of the Federal Board of Revenue (FBR).

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  • FPCCI deplores ignoring national chamber at China visit

    FPCCI deplores ignoring national chamber at China visit

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the ministry of commerce for ignoring the apex trade body at the recent important visit of Prime Minister Imran Khan to China.

    President FPCCI Engr. Daroo Khan Achakzai regretted that the ministry of commerce specially the Advisor to Prime Minister on Commerce for not helping the Prime Minister and wasting all his efforts due to their attitude and disconnect with the business community.

    In a statement on Tuesday, he cited an example that during the recent important visit of the Prime Minister to China, MOC arranged Pakistan business forum and B2B meetings between Pakistani and Chinese businessmen.

    “It was surprising that Pakistan Business Council (PBC) represented the business community of Pakistan at this important forum.”

    PBC is a non-elected body of few elite businessmen originally formed under the patronage of present Advisor to PM on Commerce and Industry.

    PBC Irrespective of its Professional merits or demerits, it cannot be a substitute to the democratically elected representatives of business community FPCCI, the national chamber of the country, but somehow the unjustified patronage of Advisor to PM has given it a more prominent role in shaping the trade and economic policies, whereas genuine stakeholders have been sidelined.

    This has resulted in deterioration of Business confidence as the policies are formulated more on intellectual ideas of few instead of input of ground realities based on input from the real stakeholders. Such policies would not help the Government to come out of its present crisis.

    The FPCCI president praised the recent achievements of the Prime Minister during his visit to China. The Signing of FTA-II and ML-1 projects will go a long way in bringing up Country’s economy.

    He said that the vision and hard work of PM is unprecedented in the history of the Country. His five points agenda of at OBR forum of mitigating climate change, establishing a BRI tourism corridor for promoting people-to-people contacts inter-cultural understanding, anti-corruption cooperation, poverty alleviation fund, and further liberalizing trade and investment flows by encouraging private sector and businesses is revolutionary ideas and were appreciated at all levels.

    Unfortunately he has inherited an economy, which is very difficult to manage, and he faces gigantic task to stabilize this. The business community has always resolved support for the Prime Minister in his efforts.

    It is worth mentioning that while Country’s own Ministry of Commerce ignored FPCCI, the apex trade body of the Country while the Councils of Promotion of International Trade (CCPIT) of Chongqing, Tianjin and Xin Jiang Provinces met the President of FPCCI and immediately signed MoUs with him during the Belt and Road Forum at Beijing thus recognizing the importance of the elected representative of the business community.

    President FPCCI has urged the Prime Minister that his hard work and vision will only yield fruitful results, when his team will take the entire business community into confidence instead of patronizing few.

    He requested the prime minister to direct all concerned trade, investment, economic Ministries and departments to engage the elected bodies of Business community specially FPCCI for their input on all economic issues and give weightage to their nominations for advisory and consultative bodies, trade delegations and important forums abroad.

  • FPCCI signs three MoUs at Belt and Road Conference

    FPCCI signs three MoUs at Belt and Road Conference

    The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has taken significant steps towards strengthening international trade relations by signing three Memoranda of Understanding (MoUs) at the Belt and Road CEO Conference held in Beijing, China.

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