President of Islamabad Industrial Association (IIA) Muhammad Ahmed said on Friday that the budget is average for the industrialist community. Lauding the budget has said that IT, SME, solar, and agro-based industries will take a boost after getting tax holidays, reduced tax tariffs, and minimum compliance with documentation. Speaking at the post-budget press conference, Muhammad Ahmed Waheed said that Super Tax had been imposed across the board on income above Rs150 million, which was previously Rs300 million and only applicable to ten sectors, including banking which is against the claim that no new tax has been imposed.
Leaders of IIA Usman Shaukat, Khalid Jaweed, Mian Akram Farid, Atif Ikram Sheikh, Tariq Sadiq, Mian Waqas Masood, Zakria A Zia, Aamir Waheed, Mirza Muhammad Ali, Malik Sohail Hussain, Naeem Paracha and others were also present at the occasion. He said that the energy tariff for the industrial sector is very high, resulting in an enhanced cost of doing business, compelling this sector to use energy-efficient devices, but duties and taxes have been increased, which could be better.
He added that investors of erstwhile FATA and PATA will be able to get their investments recovered because of extensions of income tax and sales tax exemptions for one year. He noted that an extension of income tax exemption for one year was granted for the ongoing REIT projects, enabling them to complete the halted real-estate sector.
The business leader said that youth entrepreneurship had been encouraged by a three-year income tax exemption up to the age of 30 years, enabling them to improve their businesses.
Every taxpayer has been allowed to bring one hundred thousand dollars under section 111(4) of the Income Tax Ordinance without giving a source of income, which will help the government to overcome the shortage of forex reserves. Previously, this limit was only five million rupees.
President IIA questioned the figures presented in the budget as the total budget is almost Rs14500 billion, whereas tax collection for 2023-24 has been set at Rs9200 billion. There would be a budget deficit of 5300 billion, but no source was identified to bridge the deficit.
The budget document has failed to address the core issue of expansion of the taxpayers’ base as it is feared that the existing taxpayers would be further burdened to meet the new tax target, he said, adding that charging twice the amount of tax from non-filers is counterproductive unless they are brought into the tax net. The Finance Minister said that prices had been decreased but also announced to increase the petroleum levy by Rs10, which will result in an immediate increase.