Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Saturday said the budget is in line with government announcements and expectations of the business community.
The budget document has revealed that the government has wanted growth at any cost, and it is ready to pay for it, he said.
Mian Zahid Hussain said that the government had announced Rs8478 budget in which the tax collections target is Rs5829 billion, which is twenty percent about the last year’s mark. Therefore, it will be a challenge.
Talking to the business community, the veteran business leader said that it is estimated that mobile phones worth Rs270 billion will be imported in the next fiscal and Rs16 billion will be collected in this head, which should be reconsidered at pandemic has increased importance and usage of mobile phones.
He said that taxes on telecommunication equipment and services must be reduced while the PM has rejected more taxes on calls, SMS, and internet packages which is a welcome move.
Online shopping will also attract taxes worth eleven billion rupees, and locally manufactured cars up to 850 cc will attract 12.5 percent sales tax while FED has been abolished.
He said that local manufacturing of electric cars had been encouraged by reducing sales tax from 17 percent to 1 percent, which may lure investors.
The business leader noted that Customs duty had been enhanced on imported luxuries like makeup, shampoo, food items, perfume, etc., which will help the government generate Rs11 billion. It may become an incentive for smuggling.
He criticized the imposition of Rs1 tax on every kilogram of sugar produced in the country while the decision to increase the price of batteries amid load shedding should be reversed.
Duty on some raw material has been slashed, which reversed totally on other items, which will reduce the cost of doing business, changing FBR discretionary powers is laudable, and a move regarding point of sales is positive, which will improve confidence, revenue and documentation.
The government aims to earn Rs600 billion through PDL, resulting in a hike of Rs25-30 per liter for petroleum products, which can result in another wave of inflation.
He said that the government had asked IMF for some time to reach some agreement on power tariff.