PBF demands growth oriented budget for next fiscal year

QUETTA, May 12 (APP): Pakistan Business Forum (PBF) on Friday demanded a growth-oriented budget in the next fiscal year to encourage business activities in the country with a flavour of austerity measures in the public sectors.

Sharing the Forum’s proposals for the upcoming federal budget 2023-24 with media at Quetta club, the PBF President Usman Zulfiqar along with core Committee members stressed the need for establishing export warehouses at the borders to uplift trade with neighbouring countries and incorporating the agriculture and service sectors into the tax net.

In an effort to increase the Gross Domestic Product (GDP) growth up to six per cent in the next financial year, the budget makers have to reduce tax rates to widen the tax base and curtail the parallel economy, also providing a competitive edge to Pakistan’s products in global markets.

PBF officials Zubaida Jalal, Shabnam Zafar, Naseer Malik, Mir Murad Talpur and Daroo Khan Achakzai were also present.

President Muhammad Usman said the PBF was giving its proposals for the federal budget 2023-24 with a main focus on job creation by strengthening industry, broadening of tax base through lowering rates and introducing liberal policies to attract foreign investment.

During the last three decades, he said, it was only thrice when Pakistan’s economy grew by more than 5 per cent –first in 2003-2006 and second during 2016-2018 and third during 2021-22.

“We need to bring our digital infrastructure at par with other fast developing countries, besides adopting new technologies and implementing e-government solutions,” he suggested.

The PBF President also urged the general rate of Minimum Tax u/s 113 of ITO 2001 to be reduced from 1.25 per cent to 0.25 per cent. “Considering current economic turmoil and inflationary pressure on prices and cost, the minimum tax should be abolished, at least for listed companies,” it added, among other recommendations.

PBF Vice President Jahanara Wattoo proposed economic managers to incentivise investors, simplify the tax system and take solid steps to reform the tax collecting agency.

She expressed serious concern over excessively burdening the manufacturing sector which contributes more than 20 per cent to the economy and having a share of 70 per cent in tax payments.

She also suggested that the sales tax slab should immediately be curtailed in order to reduce the cost of production and inflationary pressures.

On the occasion, PBF Vice President Chaudhry Ahmad Jawad said the slowing down of agriculture sector growth is causing serious repercussions on all aspects of the economy including inflation, poverty, employment, income distribution, current account and food security.

The government must announce tangible steps in the upcoming federal budget including curtailment of fertilizer prices and electricity tariff on tube wells – aimed at bringing down high prices of agriculture inputs, he maintained.

Ahmad Jawad urged setting up different projects including cool chain infrastructure, ripening centres, food processing and value addition industry, agro-processing industry and accredited testing laboratories at special economic zones under Public Private Partnership (PPP) mode, to ensure the availability of good quality products for exports.

The government should incentivise businessmen to invest in the latest cold storage as it was a vital part of the supply chain for exporting fruits and vegetables as well as for local markets with a tax exception for five years; to chase the target of 900 straight of the art cold storages, he added.

Jawad demanded that funds for Crop Insurance Scheme (CIS) may also be allocated in the provincial budgets for farmers to the areas affected by natural disasters/calamities, wide-spread diseases and unpredictable weather conditions in a transparent manner with an assurance of merit, through Sindh Bank, Bank of Punjab, Bank of Khyber and Zarai Taraqiati Bank Limited (ZTBL).