Any rise in rate of duty, taxes will be disastrous for economy: Mian Zahid

BUSINESS

President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of and former provincial of Mian Zahid Hussain on Monday said proposal of mini budget from some institutions will cause drastic impact on declining national economy. Increasing regulatory duty by 1 percent on imports will increase rates of raw material thus increasing cost of doing business and inflation; all sectors of life will equally suffer. Despite imposing restrictions on imports to reduce import bill and reduce pressure on foreign reserves, exports should be promoted.

 

The veteran business leader while talking to the business community said that limited benefit in term of revenue’ increase will be achieved by increasing regulatory duty on 7200 import items or increasing duty on luxury items but at the same time it will further boost inclining inflation and situation will further worsen for masses including traders and industrialists. The industrial sector will directly suffer from increasing tax rates creating more problems for the business community.

 

The former minister said that interim Government should avoid further economic measures which should be left over to the next elected Government. Incoming Government should introduce such policy that is acceptable to all stakeholders and that can benefit the Country in long run. Verification of exemption documents from Customs authorities is appreciative measure but it is important to observe that it may not harm the legal importers anyway.

 

Mian Zahid Hussain said that according to the economic survey of Pakistan Customs concessions on exempted items has reached to Rs. 198.2 billion which is 31.2 percent greater than the previous year where it was Rs. 151 billion. Advance payment facility on imports has withdrawn on imports to control the pressure on foreign reserves and hold dollars in the Country, but will increase the processing time for importers suffering the trade activities. State Bank of Pakistan has instructed all banks to received 100 percent cash margins in order to curb increasing imports.

 

He said that all these measures will create troubles for the legal importers and desired results of stabilizing the national economy in long run may not be achieved.