President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Wednesday said that commercial importers have been neglected in the Federal Budget 2018-19 and tax rate has further increased despite reduction in that.
The veteran business leader while talking to the commercial importers and business community said that export based industries are of high significance in economic and industrial development of the country and commercial importers being the raw material providers to the export oriented industries are truly considered as the backbone of the industry. The difference in taxation for industrial and commercial importers is unjust and this difference should be removed at earliest in order to provide equal opportunities to the commercial importers.
The 2 percent further tax for commercial importers has been increased to 3 percent stating it as a minimum tax which deprived commercial importers from the fruits and benefits for FTR. Moreover no exemption of taxes has been given on the import of industrial machinery, which the business community considers of high importance in the industrial development of the Country. The recent Federal Budget has given relief to several sectors of economy which we have praised on every forum, however the negligence of commercial importers which needs early consideration of the concerned authorities.
The former minister said that high duties on import of industrial machinery are a major reason behind lacking of our industry regarding latest technology and equipment. The developed countries impose minimal duties on machinery import which bring industrial development while we are increasing taxes which is adversely effect the installation of new or better machinery in our industrial sector causing less productivity and slow economic growth.
Mian Zahid Hussain demanded an immediate resolution of the issues pertaining to the commercial importers so that they can equally get benefits of trade as provided to the industrial importers and the industrial sector may further flourish with installation of new and latest equipment and machinery.