President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Thursday said that the mini budget presented by the Government is in fact the economic policy to correct the direction of economy. The bill provides several measures of policy makers to build supporting environment for investment, trade, industry and agriculture with increased profitability for the business community. To flourish investment in the Country, Greenfield investment and industrial units in special economic zones have been exempted from income tax for the period of five years in addition to exemption from regulatory duties on import of plants and machinery.
The Veteran Business Leader while talking to the business community said that alternate energy sector has also been exempted from taxes and duties in order to promote the cheaper means of energy and investment in this very important sector. Local and foreign investors will definitely attracted by the measures. Withholding taxes on trading in stock market has been waived off which will increase trade volumes and overall trading environment. Urea prices have been reduced by Rs. 200 per bag while taxes on components of diesel engines being used by farmers have been abolished which will benefit the agriculture sector.
The Former Minister said that small, medium and agriculture sectors have been given the incentives of easy loans as banks’ tax on loans to such sectors has been reduced to 20 percent from 35 percent, however, if direct benefit to these sector would have given it would draw much better impacts in terms of increased incomes and employment. RD on approximately 150 raw materials for the local manufacturing have been reduced which will benefit the manufacturing sector.
Mian Zahid Hussain said that simplified taxation system will be introduced on test basis in Islamabad and will be spread over the country which will definitely increase the tax base if gained the trust of small traders across country. Abolishing of withholding tax on banking transactions for filers is appreciative and encouraging for filers. Reducing tax on small marriage halls will ease the middle and lower middle classes. Increased taxes on luxury vehicles and mobiles will curb imports however will have least impact on majority. Monthly submission of withholding tax returns has changed to biannually which will provide ease to business community. Better impacts of this bill are yet to come in coming months. Exceeding imports against exports have played important role in current economic situation therefore, more incentives and facilities are vital for export sector, without which exports may not be increased.