March 04, 2007	Sunday	Safar 14, 1428

KARACHI, March 3: The Union of Small and Medium Enterprises (Unisame) has called for early implementation of SME policy and formulation of SME Act in order to make the budget for 2007-08 and the next trade policy more relevant and effective.

In response to Smeda’s request for policy input and suggestions for the next budget Unisame President Zulfikar Thaver said that without the implementation of these two basic policy documents the entire exercise would remain irrelevant and non-productive.

He further submitted to the Smeda that the cost of doing business was not only very high but also rising with the each passing day and this needs a lot of attention from the policy makers.

He urged the government to formulate policies for engineering, textiles, rice, wheat, sugar, and cement industries in order to study the scope of each sector and related area by taking all the stakeholders into confidence.

Mr Thaver said that it was pertinent to note that the government should play proactive role and work to facilitate trade and industry.

The Unisame has also urged the Smeda to take up the issue of an SME Export House promised in the current trade policy but has been shelved without assigning any reason. It also advised Smeda to urgently recommend for the launching of SME Credit Guarantee Scheme.

Similarly, it was also submitted that the tax exemption limit of Rs150,000 was unfair and it should be increased to Rs300,000 for SMEs. It also called for zero per cent import duty on machinery and plants and a nominal import duty on raw material. It further demanded that all food products should be exempted from sales tax.

It has been long standing demand of the SMEs to get finances from the scheduled banks on affordable mark-up and loans be given to them on guarantee basis and without a collateral.

The industrial estates management and development companies should be given tax relief and the government should give land at concession rates to the small farmers and industrialist.