LAHORE, June 5: Lahore Chamber of Commerce and Industry president Mian Shafqat Ali has said the budget is good but the relief is far below the expectations. He said the chamber appreciated the increase in salaries and pensions, assistance for marriage of workers’ daughters and educational stipends.

Decrease in tax on the salary of directors and exemption of tractors import from customs duty, Rs1 billion subsidy on poultry industry, Rs60 billion allocation for drip and irrigation system, Rs12 billion subsidy on fertilizer, incentives for dairy farming and reduction in taxes on import of CKD dumpers and loaders and imposition of tax on property were also commendable.

He said the business community did not support a 100 per cent increase in withholding tax on withdrawal of Rs25,000 from banks by a cheque. He said the chambers were demanding withdrawal of 0.1 per cent tax imposed on cheques last year, but the government had doubled it instead. There was no customs duty on IT sector and only six per cent income tax was charged. The government had now imposed a 15 per cent general sales tax on it.

He said the business community was also expecting a cut in petrol, electricity and gas charges for decreasing the cost of production to facilitate marketing of their products in the international market, but nothing had been done in this regard.

Industrialists and exporters expressed their complete dismay over the budget for the next fiscal year, saying state minister for finance Omar Ayub did not even mention the industry and the export sector what to talk of any incentive.

The industry and export sectors seemed to have totally been blacked out in the budget speech. The minister did announce a few short-term measures to alleviate poverty, but he fell far short of telling us as to what long-term steps was the government going to take to sustain growth and overcome the huge trade deficit, which did not find a single sentence in the entire speech, said APTMA leader and exporter Akbar Sheikh.

He was of the view that the budget speech contained more political rhetoric than anything substantial. The government’s agenda appeared to be lender driven.

Lahore Chamber of Commerce and Industry former president Pervaiz Hanif dubbed the budget as election budget, saying it contained nothing for any sector of the economy or the common people suffering under increasing prices of the essentials.

He said the industry and exporters were disappointed because the budget did not even discuss the issues plaguing the industry and exports of the country.

Knitwear exporter Babar Agha said the government had enhanced its own expenditure, but did not give anything to the industry or the exporters who were confronted with numerous problems affecting the exports. The speech did not even mention the bulging trade deficit and measures to overcome it.

The exclusion of industry and exports from the budget speech indicated that the government was satisfied with the existing situation, he said.

He said the government had increased minimum wages, but had not explained from where the businessmen would pay this increase to their workers.

PEC: The Punjab Economic Forum representing 15 chambers of commerce and industry has termed the budget disappointing, for lacking business protection measures.

Forum president Anjum Nisar said the business community was expecting announcement of measures for reduction in cost of doing business, but the raise announced in markup rates and gas charges would increase the cost of production.

He said the business community was also expecting measures for the textile sector in general and the hosiery sector in particular. A sizeable number of hosiery units had closed down owing to problems, but no steps had been announced for the revival of the same. The increase in markup rate would increase inflation, he said.

He said increase in import of motor vehicles would increase oil consumption and contribute the deficit. The government had covered the deficit this year, but it would be facing problems in covering it next year, he said.