MULTAN, March 22nd: President of Multan Chamber
of Commerce & Industry Malik Asrar Ahmed Awan has said that Chamber had already submitted
comprehensive proposals for the upcoming federal budget.These include
recommendations for incentivising investors, broadening of tax net through
documentation of economy and simplification of tax system.Awan said the main
objective of their proposals is to bring liberal investment policy,
infrastructure development, broadening of tax base and job creation through
industrialisation.He said that the MCCI has also suggested that the sales tax
slab should immediately be curtailed to reduce cost of production and
inflationary pressures. He urged the government to reduce sales tax to single
digit and also cut corporate tax to make the upcoming budget
business-friendly.Reflecting on the poor state of economy, Malik Asrar Ahmed
Awan said that only political will and drastic steps can revive the economy –
which should grow significantly and constantly for visible impact. He advocated
for raising the country’s tax base so that tax-to-GDP ratio improves.Talking
about the financial challenges, he said the government is relying heavily on
expensive loans from foreign commercial banks and now repayment has become a
big issue for the next government.MCCI President said there would have been no issue had these
loans, borrowed at high interest, been used for productive purposes, including
promoting exports and manufacturing sector, instead of using those just for
balance of payment.The business community
South Punjab has voiced concern over excessively burdening the
manufacturing sector that contributed 21 percent to the national economy and
had a share of 70 percent in tax payments.
