Daily The Business

Private sector will be leading economy in present era: Asad Umer

Almas Hyder says benefit of the payment of Refunds through promissory
note should also be extended to all the other sectors in addition to
five zero rated sectors

Lahore: The private sector will be leading economy in the 21st century while government would act as facilitator. Federal and Provincial government would take stakeholders on board to get their valuable
feedback

Theses view were expressed by Federal Finance Minister Asad Umer whle addressing the businessmen and industrialist here in Lahore.

Federal Finance Minister Asad Umer has pledged to make clubbing of taxes in the Federal Budget to facilitate the businessmen who paying a large number of taxes.

Federal Minister made this announcement on demand of the LCCI President Almas Hyder while speaking at the Lahore Chamber of Commerce& Industry. The LCCI Senior Vice President Khawaja Shahzad Nasir,former office-bearers and Executive Committee Members also spoke on the occasion.

Asad Umer said that business community would be given the facility of single tax collector in the coming federal budget.

He said that trust building between government and business community is need of the hour as private sector will be leading economy in the 21st century while government would act as facilitator.

He said that FBR and private sector would have to give honor to each other for trust building.

He said that promissory notes for industrial sector was the idea of private sector and it will help resolve the issue of liquidity.

He said that cabinet will approve finance bill soon.

To a question, he said that interest rate is the matter of central bank saying that savings are a must for sustainable economic development.

Last year, saving were only 10.4 per cent that were very low. These should be 25 to 28 per cent to achieve the annual growth target of 7 per cent. State Bank of Pakistan would have to maintain a balance.

He said that industries are provincial subject after 18thamendment. Federal and Provincial government would take stakeholders on board to get their valuable feedback. He said that Special Economic Zones are
of utmost importance.

“I believe that operations of these SEZs should be in the hands of private sector”, Federal Finance Minister added and said that Information Technology Sector is near to his heart. A task force has been formed and soon a package will be announced for IT sector.

He said that Privatization commission has been asked to work with full throttle for loss making public sector enterprises.

He said that 11-member board has been formed for “Sarmaya Pakistan” that would have 8 representatives from private sector while remaining
will be from the government.

The LCCI President Almas Hyder said that the benefit of the payment of
Refunds through promissory note should also be extended to all the
other sectors in addition to five zero rated sectors.

He said that elimination of Regulatory Duties (RD) on all the raw
material lines to reduce the cost of doing business and making
manufacturing competitive. He said that government should take steps
to reduce the interest rate. The recent hike in the SBP policy rate to
10% (highest in five years) has made borrowing highly expensive for
private sector and discourages investment that needs debt financing.
The Government should rezone urban centres, demarcate industrial land
and set up SEZs all over Pakistan. The LCCI President said that the
exemption from the payment of Sales Tax on imported plant and
machinery for Greenfield projects in the Mini-Budget should also be
granted to the brown field projects for Balancing, Modernization and
Replacement of existing units. For the hand-holding of SME sector and
enabling it to realize its true potential, the Government should
announce a five year Tax Holiday for the new SMEs. He said that Prior
notice should be served before the visit of Tax Officials on the
premises of business community.

Almas Hyder said that the total number of taxes should be reduced to 6
by clubbing

Labour related taxes e.g. EOBI, PESSI, WPPF, WWF Professional and
Property Tax Federal and Provincial Sales Tax. The frequency of the
tax payments of above proposed labor tax (EOBI, PESSI, WPPF, WWF
Clubbed) and Sales Tax (Federal and Provincial Clubbed) should be once
a year. The frequency of the payments of Corporate Income Tax should
also be once a year. This will bring down the total frequency of tax
payments to 6 a year.

Federal Minister of State for Revenue Hammad Azhar, Chairman Federal
Board of Revenue Dr. Jahanzeb Khan, Provincial Minister Mian Aslam
Iqbal, Farooq Iftikhar, Mian Anjum Nisar, Shahid Hassan Sheikh  and
others were also present .

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