May 24, 2008	Saturday	Jamadi-ul-Awwal 18, 1429

HYDERABAD, May 23: Agriculture and industry are main pillars of economy and need support both from federal and provincial governments in the shape of incentives, stated budget proposals put forward by the Hyderabad Chamber of Commerce and Industry (HCCI).

President, Haji Mohammad Yaqoob recommended payment to growers at par with the international rates of wheat and rice, and measures to curb smuggling of crops.

The government should issue negative list regarding imports to India in its trade policy he said and called for allowing import of steel sheets of all sizes.

In reference to perennial power shedding, he said, acquisition of generators has now become a necessity therefore the government should reduce, at least by 10 per cent, import duty on petrol generators and ensure availability to trading community on cheap rates.

He called for cutting down sales tax and customs duty on import of computers, and doing away with on packing material, plants for pharmaceutical companies and machinery.

Textile sector contributes a substantial share in foreign exchange earnings but the industry is now running in deficit due to increase in cotton prices, said Haji Yaqoob. He demanded incentives for it and called for establishing textile garments city in Hyderabad. He called abolishing all taxes on raw material with a levy of 10 per cent sales tax on all items.

He proposed a hike in income tax exemption limit to Rs200,000 and sought stability in power, gas and petroleum tariffs while supporting electricity production through coal.

In reference to provincial budget, he sought attention towards the disparity in prices of industrial plots with those of Kotri and Nooriabad estates because of which industrialisation in Hyderabad is not picking up. He proposed for removing forthwith the anomaly to encourage entrepreneurs. He recommended separate funds for Hyderabad site and setting up of an agro-based industry at places where raw material was easily available.

Pointing out another anomaly, Chamber chief said provincial excise and taxation department recovers property tax from industrialists though they are tenants. Therefore, it should be recovered from the Site Limited, he concluded.