FCCI Terms Federal Budget Pro-industry

Engineer Hafiz Ehtisham Javiad President Faisalabad Chamber of Commerce & Industry (FCCI) has termed federal budget 2021-22 as pro-industry as the government has withdrawn regularity and custom duties on 1600 tariff lines of raw material with total financial impact of Rs.4200 billion

FAISALABAD, (UrduPoint / Pakistan Point News - 11th Jun, 2021 ) :Engineer Hafiz Ehtisham Javiad President Faisalabad Chamber of Commerce & Industry (FCCI) has termed Federal budget 2021-22 as pro-industry as the government has withdrawn regularity and custom duties on 1600 tariff lines of raw material with total financial impact of Rs.4200 billion.

Giving his immediate response after announcement of the federal budget in FCCI here on Friday, he said that this step will ensure stable economic development and its trickle down effects will not only facilitate the masses but also have salutary impact on the all sectors of national economy.

He said that most of the proposals presented by different chambers including FCCI had been accommodated in this budget and hence we could term it as historic budget.

Regarding SME sector, he said that government had announced a fixed tax scheme for this most important sector which is contributing about 66 per cent in national exports. He also mentioned IT sector and said that a special regime with zero rating had been announced for the promotion of this sector which will also play a major role in the development of IT sector and increase export of its products.

He said that major chunk of our population consistent of middle class. The government had withdrawn excise and other duties on small cars up to 850-CC which will encourage middle class to have their own vehicles.

He said that government had announced multiple concessions in addition to allocating Rs.900 billion for the development budget.

Commenting on the environmental changes, Engineer Ehtisham Javaid said that government had decided to continue 10 billion tree tsunami scheme during this year which will bring positive impact on the overall environment.

Regarding tax collection, he said that an ambitious target of Rs.5800 billion had been fixed but it was a good gesture that government would generate additional taxes from new tax payers instead of twisting the arms of existing tax payers. He also welcomed the self-assessment scheme and third party audit for small traders. He said that this proposal must be further fine-tuned to give required and tangible results.

He said that minimum salary had been fixed at Rs.20,000 which will give much needed benefit to the low-income groups.

He said that inflation was one of the most daunting challenges. It was at 9.1 percent but the government was determined to bring it down to 6.5 percent during the next financial year.

He also welcomed the government decision to enhance 10 per cent salaries and pension of government employees.

Giving an overview of the budget speech, he said that it will accelerate the pace of industrial growth and if government succeeded to ensure its trickle down effects, it will give maximum benefits to the people and downstream industry.

He also welcomed the government decision not to yield the IMF pressure on enhancing electricity tariff and said that government must ensure continuity of its policies.

He hoped that current federal budget will be for a period of next financial year and no mini budget will be announced during this year.

President FCCI said that Pakistan's biggest economic zone was being developed in Faisalabad and government had committed to give maximum facilities to the new investors. In this connection, the rate of turnover tax had brought down to zero.

About the welfare aspects of the federal budget, he said that the government will give affordable houses to the low-income groups.

About technology up-gradation fund, he said that under it Rs.260 billion was released to the textile sector out of total allocation of Rs.450 billion. Thus 250 major industrialists benefited from this scheme while its major chunk must be passed on to the SME sector. He also repeated his previous demand of forensic audit of entire textile chain starting from ginning to the fashion garments. It will help government to identify the mafia which was plaguing the economic and industrial sector.

Senior Vice President FCCI Chaudhary Tallat Mehmood, Chaudhary Muhammad Nawaz, Rana Ikram Ullah, Rana Fayyaz, Khurram Shehzad, Mirza Muhammad Aslam, Abdullah Qadri, Kashif Zia, Zeeshanul Haq an Rashid Muneer were also present on the occasion.