Dr. Mirza Ikhtiar Baig SVP FPCCI congratulate Prime Minister Imran Khan and his economic team for the successful Amnesty scheme, he said it’s inspiring that more than 100,000 non-filers registered in the scheme, a change of mindset. He suggested FBR that, new filers must be treated without harassment to encourage non-filers looking to join tax net. State Bank tool to curb inflation by increasing lending rates is not workable. There are rumors that IMF demanded further increase in the discount rate which is not workable to establish any new industry at 15% to 16% markup, thereby seizing job creation.
Dr. Baig said, on withdrawing zero rated facilities from five export oriented sectors, it was assured by Finance Advisor & Chairman FBR that the sale tax refunds to the exporters to be made at the time of receiving export proceeds in the bank with auto generation of refund vouchers by the banks, but no such mechanism has been announced as yet, exporters are worried for the delay/nonpayment of the refunds as per past practice of FBR. Old pending sale tax, income tax, DLTL, Drawbacks, Exporters refund amounting to Rs. 200 billion are not made for the last many years, seriously effecting the liquidity of the exporters as they can’t afford additional borrowing at the current 15% markup. He also requested government to make some arrangements with banks for the discounting of sale tax refund bonds issued to the exporters at concessional rates. Dr. Baig gave proposal to stop formation of black money allowing transfer of plots and properties on the actual market value at reduced tax rates of 3%. Commercial exporters of textile should also be entitled to get rebate like manufacturers cum exporters under Prime Minister’s trade enhancement package for promotion of exports under textile policy as they earn same color of dollar for the country. Old pending issue of GIDC to be amicably resolve once for all to avoid uncertainty.
FPCCI appreciate government incentives for the economic reforms to discipline the economy but it should be in a gradual manner as no one can’t clean the mess of the many decades in one year, it will disturb the industry. FPCCI as policy statement supports government for the documentation of economy.