KARACHI: The business community of Karachi praised Finance Minister Asad Umar for presenting the Economic Reforms Package and hoped it will promote industrialization and curtail trade deficit.
In a joint statement on Thursday, the office bearers of KCCI stated: “We hope that the remaining recommendations will also be included in near future which would boost the economy, promote industrialization, create employment opportunities and help in bringing down the rising trade deficit.
While thanking the Finance Minister for giving due consideration to KCCI’s proposals, they said that it was a ‘job well done’ in which many lacunas have been removed and it clearly indicates the directional change that would help in dealing with the economic crises, bring down the cost of doing business and also ensure ease of doing business.
The measures taken have sent a positive message to the trade and industry in Pakistan which will help achieve the stated goal of creating a conducive environment for investment and improve Pakistan’s ranking on EODB.
Chairman Businessmen Group, Siraj Teli and KCCI president Junaid Makda said that removal of withholding tax on cash withdrawals from bank accounts by filers has sent a positive signal to the business community.
They opined that restoration of FTR for commercial importers is also a major step taken by the government in the supplementary finance bill which was proposed by KCCI.
This decision will prevent unnecessary audits of tax-payers who are already paying withholding tax at a very high rate.
The measure will also support the SMEs who do not have the capacity to go through lengthy audit process.
The government has also addressed the long outstanding issue of Sales Tax Refunds to exporters by issuing Promissory Notes with 3 year maturity, which will help to improve the liquidity and working capital requirements of the exporters, they added.
They said that it was really heartening to note that the government has withdrawn critical taxes on capital market, simplified procedures for setting up businesses and undertaking investment, facilitated the industry, agriculture and Small & Medium Enterprises (SMEs).
They also expressed satisfaction on government announcement to abolish all taxes including sales taxes on green field projects while the decision to exempt investments in green field projects from income tax for 5 years would also yield positive results and prove favorable for the economy.