ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) termed the federal budget 2021-22 a balanced one and expressed the hope that it would lead the economy in a right direction to achieve better growth and expansion targets.

ICCI President Sardar Yasir Ilyas Khan said the government has accepted many proposals of the major chambers of commerce and industry.

He said progress and prosperity of the country was dependent on promoting industrialisation, adding the government has reduced customs and regulatory duties on the import of raw materials and goods for many industries which is encouraging step, said a press release.

He said reduction in tax liability by 25 per cent for women entrepreneurs was a welcome move and urged the government to consider similar relief for Small and Medium Enterprises (SMEs).

Mr Khan lauded the reintroduction of the self-assessment scheme for taxpayers as it would give them more confidence and help improve tax revenue. He said deletion of 12 withholding taxes in the budget was a positive move as these taxes were putting extra burden on the taxpayers.

However, he urged the government to introduce a two per cent fixed tax scheme for traders to realise the actual tax potential of the country and promote a documented economy.He said high power tariffs in Pakistan were a major cause of high cost of business and suggested the government to reduce power tariffs to make industry more competitive for exports.

He hoped that the budget would be helpful in further accelerating the pace of economic activities in the country.

Mian Akram Farid, Chairman Founder Group, termed the overall budget as positive. However, he urged the government to announce some incentives to attract more foreign direct investment.

He said Pakistan has the potential to increase its information technology exports up to $8-10 billion for which more concessions for IT industry and e-commerce were the need of the hour.

He said the construction package had stimulated the economic activity in the sector and urged the government to announce similar packages for all industries.

He said SMEs were playing a vital role in the economic development and suggested to announce cheap credit schemes for them in the budget.

He said only 300 firms were contributing 70pc of tax revenue and urged the government to strive for broadening the tax base through a fixed tax regime.

He also stressed the need to focus on skilled development of people to enhance manpower exports.

ICCI Senior Vice President Fatima Azim and another official, Abdul Rehman Khan, appreciated reduction in the capital gain tax from 15pc to 12.5pc.

They also stated that relief in FED and sales taxes on locally manufactured 850cc cars and electric vehicles were positive steps, adding these measures would boost investment in stock market and promote the automobile industry.

Published in Dawn, June 13th, 2021