Daily The Business

Chambers of commerce issues joint budget proposal declaration

Seeks elimination of customs duties, regulatory duties additional duty
on raw materials

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Lahore: All Pakistan chambers of commerce and industries in a joint
budget proposal declaration Saturday sought zero custom duties on all
raw materials, elimination of regulatory duties and additional custom
duty on raw materials enabling the local industry to compete with the
smuggling and mitigate the effect of low tariff Free Trade Agreements.

The LCCI President Almas Hyder presided over the meeting of the
Chambers while Senior Vice President Khawaja Shahzad Nasir, Vice
President Faheem-ur-Rehman Saigal, Presidents of Chambers spoke on the
occasion and gave thought provoking workable proposals for upcoming
budget.

They said that rate of duties for trade and industry must be same so
that SMEs who procure from Trade, should have a level playing field.
Custom duties on intermediary products should be reduced so that our
industry can be able to import quality materials, components and
machinery from the rest of the world.

They said that nonpayment of Refunds is drying out liquidity from the
market. Payment through promissory notes should also be extended to
all sectors including five zero rated sectors. Refunds should be
issued automatically without application, or pre-audit, within 60 days
as per rules. Markup rate should be reduced as it has made borrowing
expensive. They said that benefit of tax holiday should not just be
for new projects but also for expansions. Provincial governments
should re-zone areas in and around urban centers, both for industrial
and commercial use to help entrepreneurs invest in green field and
other projects. Foreign investment should only be allowed as a joint
venture or as a public listed company so that local investors also
benefit.

The participants said that company office should be formed for
registration of new companies. Registering a company should be
separated from regulating a company.

They said that there should be one tax collection Authority for the
collecting of both federal and provincial taxes. Total number of taxes
should be reduced to five by clubbing, frequency of tax payments
should be reduced and steps should be taken to separate tax collection
from service provision.

They said that audits should be risk-based with one month prior notice
rather than random audits. There should be holiday for all taxes and
levies for three years for the newly registered companies, especially
for SMEs. They said that exemption from the payment of sales tax on
imported plant and machinery for greenfield projects should also be
granted to brownfield projects. No exemption should be given on
imports, if the equipment, machine or part is locally manufactured.
Fixed tax system should be introduced at the SME level to enhance the
tax base.

The participants of the meeting said that there should be exemption
from Audit for taxpayers who deposit 20% or more tax over the last
year. The tax exemption certificates to commercial importers and
manufacturers should be issued automatically if their withheld tax is
equal to last year tax.

Almas Hyder expressed gratitude to the Presidents and other officials
of All Pakistan Chambers of Commerce & Industry and hoped that joint
declaration will help government to formulate effective policy
framework.

President of Lahore Chamber Almas Hyder, Senior Vice President Khawaja
Shahzad Nasir, Vice President Faheem-ur-Rehman Saigal, President of
Attock Chamber Shahid Zaman, President of Bahawalpur Chamber Mubashar
Hussain, Secretary General Syed Abeer Haider, President of Chakwal
Chamber Malik Ghulam Murtaza, former President of Dera Ghazi Khan
Chamber Zulfiqar Ali, Officials of Gujrat Chamber, Jhang Chamber,
Jhelum Chamber, Senior Vice President of Rahim Yar Khan Chamber Khalid
Saleem Ch., President of Sahiwal Chamber Rashid Hameed Ch., President
of Sargodha Chamber Mirza Fazal ur Rehman, Officials of Sialkot
Chamber, Faisalabad Chamber, Gujranwala Chamber, President Rawalpindi
Chamber Shahid Saleem, former Senior Vice President Saboor Malik,
President Sheikhupura Chamber Aizad H. Syed, member Malik Manzoor,
officials of Vehari Chamber, Khanewal Chamber, President Haripur
Chamber Atta-ur-Rehman, Senior Vice President Kohat Chamber Muhammad
Shahid, President Mardan Chamber Zahir Shah, officials of Sarhad
Chamber, Swat Chamber, Mohmand Agency, Lower Dir Chamber, Abbotabad
Chamber, Khyber Chamber, Quetta Chamber, Lasbela Chamber, Larkana
Chamber, Mirpur Chamber, Jamshoro Chamber, Shaheed Benazir Chamber,
Gilgit Chamber, Hunza Chamber and president Islamabad Chamber Hamed
Hassan Moughal spoke on the occasion.

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