PESHAWAR, May 17: The Sarhad Chamber of Commerce and Industry has presented budget proposals for the next fiscal to the federal government with uninterrupted electric and gas supply to industrial units in the province emerging as the major one.In a news release issued here on Thursday, the SCCI said the budget proposals had been floated for revival of the militancy-hit industry and business in the province.

It blamed energy crisis for the problems faced by industrial and commercial sectors in the province and said under the 18th Constitutional Amendment, the government was bound to ensure uninterruptible supply of gas and electricity to industries.

The chamber suggested increase in internal rate of return on hydropower projects to encourage electricity generation from water resources instead of thermal power generation. It also proposed imposition of a specific cess or tax on goods imported through Afghan Transit Trade for spending its amount on damaged road infrastructure in the province.

The SCCI urged the government to extend the Prime Minister’s Fiscal Relief Package for two to three years, refrain from imposing new taxes, bring new taxpayers in the net, minimise the existing rate of customs duty and sales tax, take effective steps to curb smuggling, and minimise tax rate on Afghan Transit Trade goods.

It said along with other sectors, agriculture and services should also be brought in the tax net, while there is also a need forabolition of illegal and unnecessary taxes, establishment of modern dry port in Peshawar, provision of passports and driving licences to taxpayers, and subsidy on utilities.

The chamber also proposed special relief for businessmen and industrialists of the province and said the government should reform tax system, increase the withholding tax rate on cheques from banks from Rs25,000 to Rs100,000, improve sales and income tax rules, and reduce sales tax rate to 10 per cent from 22 per cent.

Also the release carried a statement of SCCI president Afan Aziz, who said the chamber had given ‘solid’ proposals for tax relief for businessmen and revival of militancy-hit businesses and industries in the province. He urged the federal government to incorporate these proposals in the budget document.

“We are not against the widening of tax net but the government should bring agriculture, services and other sector under tax net. Revenue will increase if there are new taxpayers. There is no need to further tax the taxpayers in the province,” he said.

Mr Afan said businessmen faced lots of challenges and difficulties due to prolonged militancy and insurgency in the province and therefore, the Prime Minister’s Fiscal Relief Package for them should be extended for another two to three year because the province continued to face terrorism.

He said trade deficit between July 2011 and April 2012 had been recorded at $17.65 billion, which was 45 per cent higher than what was recorded during the previous fiscal. He urged the government to prioritise attracting local and foreign investors to the province for revival of industrial and business activities.

The SCCI president sought a policy for stabilising national economy and said traders, businessmen and other stakeholders should be consulted on it.