LAHORE, June 6: The new budget received a mixed resonse from the business community in the provincial metropolis on Monday.

While the Lahore Chamber of Commerce and Industry office-bearers termed the budget balanced and incentive-oriented, some representatives of its member trade organizations criticized it.

LCCI President Mian Misbah-ur-Rehman, Senior Vice-President Sohail Lashari and Vice-President Sheikh Muhammad Arshad said that the relief given to the textile sector was a step in the right direction. They said that the withdrawal of sales tax on marriage halls and a reduction in tax on mobile phones would provide relief to the general public. Amendments promised in DTRE were also expected to generate a lot of economic activities.

They said the farmers would benefit from a reduction in duty on import of tractors from 20 per cent to 15 per cent, and the construction industry would get a boost as a result of withdrawal of duty on earth moving machinery import. They were of the view that construction cranes should also have been exempted from the duty.

The chamber office-bearers said that a large sector of industries in general and the leather sector in particular had been completely ignored in the budget. “A special package should have been given to the entire industrial sector.”

They said that a 15 per cent tax on WLL was not a good step as it would hit the industry hard. Special attention given to the agriculture sector could, however, help usher in a green revolution, the added.

Pakistan Cottage Industry Association Chairman Malik Ghulam Sarwar regretted that the government had completely ignored the small-scale industry in the budget. He said the government had offered concessions and incentives only to the capitalists but it had failed to give anything to the cottage industry constituting over 80 per cent of the industrial sector.

He said the cottage industry required soft loans and cut in utility rates for surviving in the competitive market, but the government had focussed all its attention only on the large-scale industry while formulating the budget.

The All Pakistan Textile Processing Mills Association chairman said facilities were expected for the entire textile sector in the federal budget because it was earning the largest amount of foreign exchange. “The textile sector seeks reduction in utility charges, exemption from sales tax and subsidies for remaining competitive in the world market, but had been given nothing.”

Former Lahore Township Industries Association vice-chairman Malik Mubashar Ahmed and former LCC executive committee member Raees Sheikh said that 0.1 per cent withholding tax on cheques would terrorize small traders and result in manifold increase in cheques below Rs25,000. “Some of them may even give up transactions through the cheques.”

They said that the tax was unjustified as it would apply not only to the routine business transactions but also to the cheques issued for payment of utility bills. They said the real estate sector involving billions of rupees of unproductive investment had not been touched and tax had been imposed on bank cheques.

Chemical Society of Pakistan Vice-President Arshad Mahmood said that mega power projects were necessary for continuing the growth of economy, but nothing had been said about the same in the federal budget.

APP adds: The Lahore Stock Exchange has welcomed the federal budget. “This is positive budget,” LSE Managing Director Hamid M. Imtiazi said.

He said that measures announced in the budget would provide new depth to the stock market.

Sarhad Chamber of Commerce and Indusry President Malik Niaz Muhammad termed the budget ‘business friendly’. He observed that it was a textile and agriculture based budget. He said the announcement of forming ‘business support fund’ would benefit small businessmen.