FCCI Hopeful For Reasonable Relief In Federal Budget 2024-25

Despite daunting economic challenges, the federal government is making serious efforts to trim electricity tariff and hopefully a reasonable relief could be passed on to the consumers in federal budget 2024-25, said Dr Khurram Tariq President Faisalabad Chamber of Commerce & Industry (FCCI)

FAISALABAD, (UrduPoint / Pakistan Point News - 23rd May, 2024) Despite daunting economic challenges, the Federal government is making serious efforts to trim electricity tariff and hopefully a reasonable relief could be passed on to the consumers in federal budget 2024-25, said Dr Khurram Tariq President Faisalabad Chamber of Commerce & Industry (FCCI).

Addressing a pre-budget presser here on Thursday, he said that industrialists never demanded subsidies but they could not pay cross subsidies for the others. He said that the industrial sector was bearing a huge burden of Rs.245 billion as cross subsidy to the 60% life line consumers of electricity in the country.

He said that the steps should be taken to remove this distortion otherwise industries would start closing.

He also expressed concern over the discriminatory tariff of gas for different provinces and demanded uniform gas rates for all provinces and sectors.

He opposed sale tax registration for high turnover sectors and demanded their inclusion in the fixed tax regime. He was optimistic that in this case the government would get more taxes.

Dr Khurram Tariq said that the SME sector was in total shamble. “26% units have been closed which were contributing 20-25% share towards exports'', he said and demanded that the government should allow them duty free import of old machinery to upgrade their units and compete in the international markets.

He expressed his gratitude for the Prime Minister and said that he is taking special interest in exports and holding a meeting every fortnight to resolve immediate issues in order to enhance exports.

He further said that PM has directed to clear all deferred DLTL claims which could help exporters to improve their liquidity.

He pointed out that opportunities of hundred billion Dollars are knocking at our door as US and other EU countries are going to impose heavy duties on Chinese exports.

He said that the government should play its role to pay refunds and rebate claims of exporters so that they could encash these opportunities by getting maximum export orders.

He also expressed concern over uninterrupted smuggling and said that the tax base should be broadened to lessen the burden on the existing taxpayers.

Senior Vice President FCCI Dr Sajjad Arshad said that the government should focus on improving the business environment as due to the current situation the traders are changing their businesses or shifting to other countries. About 8300 Pakistani have already registered them in Dubai due to the ease of business there.

Dr Sajjad Arshad said that the share of the industrial sector in GDP is 21% but they are paying 68% taxes. “On the other hand, the share of agriculture in GDP is 25% but it was paying only 1% taxes”, he said and added that the government should bring uniformity and consistency in its policies to save the country from economic crisis.

Later, Vice President FCCI Hajji Muhammad Aslam Bhalli offered a vote of thanks and hoped that the journalists would bring these issues to the notice of high-ups to save the country from protracted crisis.