KARACHI, June 14: Business leaders have termed the budget 2004-05 investment, growth and export-oriented that will accelerate industrial growth and create job opportunities.

FPCCI President Riaz Ahmed Tata has appreciated the finance minister for accepting most of the recommendation of the business community. The proposed measures, he said, would ensure growth in industry, trade, exports and employment.

He said the cost of doing business in Pakistan, which is about 27 per cent more as compared to competing countries, would come down because of concessions allowed in sales tax and customs duty on import of machinery, equipment and raw materials.

Mr Tata said the removal of multiple rates in sales tax would not only check corruption and leakages, but would also help reduce the cost of production. Similarly, the elimination of sales tax on ginned cotton and imported plant and equipment would bring down the production cost.

Pakistan Soap Manufacturers' Association Chairman M. Yakub Karim said that incentives given to education, construction, automobiles and agriculture sectors were such measures that would pay in the long run.

He said the rationalization of customs duty on import of industrial raw materials dispensing with indemnity bonds and installation certificates would accelerate the pace of industrialization. Duty rationalization on smuggling prone items, he said, would help revive industries and generate employment.

Mr Karim said a reduction of duty on 466 items of raw materials, cut in withholding tax, withdrawal of central excise duty on paints and varnishes would bring down the cost of doing business, and in return, would assist in boosting business and industrial activities.

G.R. Arshad, chairman, action committee of the All Pakistan Textile Processing Mills Association, and former KCCI president in a statement said the proposed measures in the budget 2004-05 would help accelerate the pace of investment and industrial growth in the country.

He said these measures would enhance the volume of exports. "Abolition of further tax, turnover tax and prescribing one single uniform rate of sales tax and increase in the threshold from Rs500,000 to Rs5,000,000 for registration under the Sales Tax Act 1990 will greatly help give a spin to the economic activity in the country."

Liberalization of depreciation allowance, allowance of adjustment of minimum tax during the next five years, exemption on capital gains up to 2007 are such measures that indicate that the government is keen to see trade and industry to flourish, Mr Arshad added.

Karachi Cotton Association acting chairman Anwer Yasim termed the budget balanced, realistic and a step towards promotion of growth and investment. He said the abolition of 15 per cent sales tax on supply of ginned cotton would enhance competitiveness of the textile sector in the world market.

It will boost exports and resolve the hassle of refund and create cash flow of the export-oriented industry. Pakistan Cloth Merchants Association Central Chairman Abid Chinoy said the budget was business-friendly, balanced and investment-oriented.

He said the measures taken to promote agriculture and industrial sectors with a special attention given to small and medium enterprises would play an important role in the promotion of industrial development.

Pakistan Tanners Association Chairman S.M. Naseem chairman said the measures proposed in the budget would make the country's finished goods competitive in the world market. However, he said if these measures were implemented in letter and spirit with pragmatic approach only then the desired results would be achieved.