KARACHI: SITE, Pakistan’s Industrial Powerhouse and the SITE Association of Industry (SAI) is the voice of Pakistan’s largest & most diverse industrial base. The Industrial Sector contributes 20-22% to the GDP and bears over 50% of the national tax burden.<\/p>\n
In its Budget proposals to the Prime Minister, Finance Minister, Governor SBP, Chairman FBR and others, President SAI Kamran Arbi warned the Government to avoid \u201ckilling the goose that lays the golden eggs!\u201d \u201cFor increasing the Tax-to-GDP ratio, the Govt should bring the untaxed and undertaxed sectors of the economy into the tax net\u201d. \u201cOverburdening of the crucial Industrial sector runs counter to Pakistan’s economic development goals\u201d, says the SAI proposals.<\/p>\n
SAI\u2019s eight key recommendations to Govt encompass four areas of policy making: fiscal, monetary, trade and energy policies. SAI demands,<\/p>\n
1. Substantial reduction in direct and indirect taxation measures on industries<\/p>\n
2. Reduction in corporate taxation, dividends and on salaried persons<\/p>\n
3. Removal of unnecessary restrictions on import of industrial inputs<\/p>\n
4. Implementation of a single cascaded rate of import tariffs on industrial inputs and removal of additional and regulatory duties<\/p>\n
5. Provision of a predictable forex regime with 12-months forex cover for imports and exports<\/p>\n
6. Revision of energy policies to reduce electricity and gas tariffs for industries<\/p>\n
7. Progressive reduction of policy rates to stimulate industrial and economic growth<\/p>\n
8. Lowering of lending rates for industrial projects and exports to a single digit<\/p>\n
SAI emphasized that the Federal Budget should take a strategic direction and go beyond a tactical number crunching exercise.<\/p>\n
The federal budget should:<\/p>\n
\u2022 Exercise prudent debt management strictly under The Fiscal Responsibility and Debt Limitation Act, 2005<\/p>\n
\u2022 Prioritize allocations for national exigencies, particularly for reindustrialization<\/p>\n
\u2022 Enable prudent economic, social, and regulatory policymaking<\/p>\n
\u2022 Ensure transparency, accountability, and responsible public spending<\/p>\n
\u2022 Drive economic growth by stimulating investment and creation of jobs<\/p>\n
\u201cProposed budgetary measures if introduced will foster industry-driven economic growth in Pakistan, IN-SHA-ALLAH\u201d said the SAI Budget document.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI: SITE, Pakistan’s Industrial Powerhouse and the SITE Association of Industry (SAI) is the voice of Pakistan’s largest & most diverse industrial base. The Industrial Sector contributes 20-22% to the GDP and bears over 50% of the national tax burden. In its Budget proposals to […]<\/p>\n
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