KARACHI, March 30: Business and industry leaders have urged the government to allow all sorts of inputs—raw materials, machinery and accessories—at zero rate of customs duty, sales tax, withholding and income tax. “If the government wants to see rapid economic growth and would like to tackle unemployment problem it will have to simplify business laws, reduce paper work and de-regulate the entire economy which is presently over-regulated,” were the observations of business leaders.
As a first step it is being strongly demanded that the government in the forthcoming budget should remove all sorts of taxes on inputs.
“We do appreciate that the Central Board of Revenue is working on zero rate inputs for textile industry but it would be even better if all categories of industries are also included in this scheme to attract more and faster investment across the board,” observed chairman Industry and Privatization Sub-Committee of Karachi Chamber of Commerce and Industry (KCCI) Mohammad Naqi Bari.
The KCCI had been urging the government to withdraw all sorts of taxes and customs duty on raw materials, plants and machinery and should convert the over-regulated economy into a ‘single document’ as was being done in Sharjah (UAE), he added.
If the government was hesitant to take such a big step by giving zero rate inputs to entire industry, Naqi Bari said, it could begin with export-oriented industry which could be entirely free of lengthy documentations and taxes. “We can only survive if we take cognizance of fast changing global business environments and working systems.
Mr Bari said that only those nations would survive and would be able to defend their economic interests which would give congenial and friendly investment and working environments by doing away with curbs and controls and putting the bureaucracy in the back seats.
Citing an example, he said Dubai, Sharjah and other UAE emirates are living examples that have proven to the world that one does not need economist or expert to convert his country into a business hub but only free and friendly environments with little bureaucratic involvements could change fate of a nation.
He suggested that procedure for export should be made simple and efficient. Instead of plethora of export documentations it should be reduced to one single form. Mr Bari cautioned that if we further waste our time in decision making, we as a nation of 140 million may be overtaken by even UAE, tiny states.
He further said that these states are trying to lure our businessmen and entrepreneurs. As a matter of fact, we should adopt more simple procedures and rules to make a thrust in the economic field so that there is no flight of capital from here.
The chairman SITE Association of Industry, Dr Ikhtiar Baig suggested that no question should be asked about source of income for new investments in industries, both in machinery and capital. Similarly, machinery and spare parts should also be allowed at zero rates.
