GUJRAT, June 19 The business community in Gujrat has expressed disappointment over the new federal budget, which lacks incentives for its major industries like fans, furniture and pottery.

According to an estimate Gujrat contributes more than $55 million of export earning to the national exchequer annually.

The local leaders feel that the government should have announced a strategy to revive sick industries so that this neglected sector could bring revenue, said Ali Usman, the senior vice-president of Pakistan Electric Fans Manufacturers Association (Pefma).

He said cost of doing business was already high and the increase in the withholding tax from two per cent to four per cent will add to businessmen woes.

With reduction in subsidy the rates of electricity will increase by 30 per cent, which will ultimately affect the prices of the products in the market, said Javed Butt, the president Gujrat Chambers of Commerce and Industry.

He said that the business community had demanded of the government to reduce the rate of interest but all in vain.

Commenting on the decrease in the prices of automobiles and mobile phones, Ali Usman said that the poor people were finding it difficult to make their both ends meet and such announcements will not bring butter for them as they already cannot afford to buy vehicles or mobile phones.

He urged the government to reduce the corporate taxes, besides improving the law and order situation to promote industrialisation.

Haji Mohammad Ilyas, a leading fan exporter and former president of Gujrat Chamber of Commerce and Industry expressed concern over the proposal to make assessment of the export income in addition to existing one per cent income tax on exports.

He however lauded the government's decision to cut import duty on varnish to 10 per cent, which would decrease the price of copper wire used in manufacturing of fans.