QUETTA, June 7: The business community has given mixed reaction over the national budget on Saturday.

A former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Fazul Rehman Dittu terming the budget a balanced one, said that the government has announced incentives for non-tax payers allowing them to pay two per cent on their turnover up to June 30 and get themselves registered. “It is injustice with regular tax payers,” he said and added that government should have announced incentives for them also. However, he welcomed the government’s decision about declaring Gwadar port as a tax- free zone and said it would give a boost to the country’s economy. It would also provide a trade route to the Central Asian States. He said Gwadar deep seaport would create economic opportunities and trade activities in Balochistan.

The former FPCCI president referring the reduction of sales tax and price of cement by 15 per cent, said that it is a wise decision, which would boost the housing sector and common man would also take benefit of this inventive.

He said the government has also allocated a handsome amount of Rs 53 billion for giving subsidy to the power sector, which shows that government will not increase electricity rates. He said it will reduce cost of production through which Pakistan would be come in competition in the international market, as its production will also increase.

President of Gems and Jewellry Merchant Association, Mohammad Usman also welcomed the new financial year’s budget proposal. However, he also criticized the government decision of giving incentives for the non-tax payers and said that it is an injustice to those people who are paying their tax regularly. He said the government decision will encourage tax defaulters.

Mr Usman referring the 15 per cent increase in the salary of government employees, said: “It is a peanut comparing to the price hike during last one year.” He said the government should increase the salary at least 25 to 30 per cent.

A leading exporter and provincial president of PML (Zia group), Mir Zarak Zehri commenting on the budget said it is for the first time that a government has presented a tax-free budget, which will give relief to the common man. He also welcomed the tax incentive for small industry. He said with increasing tax paying limit from five million to 20 million will help in developing small industry in the country. He said the government has also declared Gwadar a tax- free zone, which will help in making Pakistan economically sound. He said it would change the conditions of Balochistan and pave way to bring the province at par with other areas.

Mrs Robina Irfan, a woman PMA of Balochistan Assembly, termed the budget a “ people-friendly budget” and said that this budget will give a great relief to the common man.” She said the budget documents show that with the steps taken during last three and half years have given a right direction to the country’s economy, which is growing with the passage of time. However, she said the government should have announced at least 30 per cent increase in the salaries of government employees. She said during the last three years the electricity and gas tariff has been enhanced by many times while the prices of daily use items have also affected the salaried class. She demanded that the government should reconsider its decision regarding increase in salary.

The secretary-general of Jamhoori Watan Party, Khuda-i- Noor also supported the government employees stand regarding increase in their salaries and said that more incentive should have been announced for them. He said though the finance minister has presented a tax- free budget but imposing new taxes through a mini-budget cannot be ruled out, as was done by previous governments.