Automobile, textile and employee federation representatives have shown their disappointment over the absence of measures to cut the cost of production or create jobs in the Budget 2020-21.
Pakistan Automotive Manufacturers Association (PAMA) Director General Abdul Waheed Khan told media that in the light of massive downturn, the auto industry was expecting a stimulus package at least in the shape of withdrawal of unnecessary and avoidable taxes such as additional customs duty (ACD), additional sales tax (AST), federal excise duty (FED) of 2.5-7.5 per cent depending on engine power and turnover tax.
WhilePeople from all walks of life including civil society, economics, education and political experts here Friday highly praised the second tax free budget 2020-21 of the PTI Government and termed it an inclusive in all respect with maximum relief provided to common man.
Terming the Federal Government budget 2020-21 comprehensive and goal-oriented, economic and business expert, Sumbul Riaz told that Prime Minister Imran Khan and his economic team deserve full credit and appreciation for presenting a tax free budget for fiscal year 2020-21 despite the massive economic losses due to coronavirus pandemic.
She said a huge amount of Rs1324 billion were proposed for development projects that would help expedite pace of economic development and provide quality infrastructure to people.
She said prices of daily use items mostly used by common people like tomatoes, pulses, petrol, diesel etc were decreased in the budget and maximum facilities were provided to the taxpayers to broaden tax base.
Misal Khan, a retired Information Officer has also highly praised the Federal Budget 2020-21 and termed it wide-ranging with maximum facilities to poor segment of the society were provided.
He said a huge amount of Rs10 billion were proposed for agriculture development and prevention of locusts in the country, saying locusts attacks has affected agriculture crops in different districts and allocation of such huge amount would help control its attacks.
He said Pakistan was a water stressed country largely depend on River Sindh water for irrigation of thousands acres lands in the provinces mostly in KP, Punjab Sindh and allocation of Rs70 billion for water resources in budget would help bolster agriculture productivity and strengthen food security. He said livestock, horticulture and fruits sectors would also get upward boost.
Misal Khan said Pakistan was facing a massive challenge of COVID-19 since March that put extraordinary pressure on our hospitals and has appreciated allocation of Rs20 billion in the budget for health sector that would help provinces to counter the pandemic.
He said the country can not afford political instability, agitation and protests in the prevailing coronavirus situation and it would have been better if opposition listen to the budget speech with calm instead of raising placards that would pass a positive message of national unity and cohesion against coronavirus worldwide.
Professor Dr Muhammad Naeem, teacher Riaz Khan and former Nazim, Bahadar Khan have also lauded the PTI Government budget and termed it the best budget in the prevailing difficult economic situation.
They said earmarking of Rs5 billion for education reforms, Rs2 billion for Kamayab Jawan Program and Rs1.5 billion for Naya Pakistan Housing Program would help generate employment opportunities and allievate poverty besides improve socioeconomic conditions of masses.
They said Pakistan was currently confronting to massive challenge of COVID-19 affected all segments of society, which could be countered through national unity.
The experts said it was the best budget announced by the present elected Government in the present difficult economic scenario where maximum relief were provided to almost all segments of the society.
He said the government’s intervention is inevitable to revive the auto industry at this critical juncture when sales have come down by over 50-80pc in various segments during the 11 months of the current fiscal year leading to low revenue collection.
He said the auto industry has suffered due to frequent policy changes and other factors like exchange rate parity, demand collapse and the recent lock down. “The government should have announced a stimulus package in Budget FY21 to revive the auto industry,” he added.
Pakistan Association of Automotive Parts and Accessories Manufacturers former chairman Mashood Ali Khan said the budget has nothing for auto manufacturers. The government should have abolished ACD, AST and FED to bring down vehicle prices besides cutting down turnover tax to 0.5pc from the existing 1.5pc.
However, the budget has not provided any relief to the ailing auto sector. He added that manufacturers would face hard times in coming months in absence of any relief from the government and sluggish demand.
“While existing assemblers and vendors will suffer badly due to falling sales and lack of support from the budgetary measures, Pakistan is unlikely to witness any fresh investment as the budget lacks any incentives,” Mashood said.
Association of Pakistan Motorcycle Assemblers Chairman Mohammad Sabir Sheikh said that “no measure has been taken in the budget to bring down the price of two wheelers which is a common man’s transport.”
He said this was a time for the government to announce a people-friendly budget under the current coronavirus crisis and lock down scenario which has wreaked havoc on the auto industry.
Employers Federation of Pakistan President Ismail Suttar said the budget lacks out-of-the-box solutions to jumpstart the economy, cut down manufacturing costs, create jobs or incentivise exporters amid reduction in business orders.
He said the broader policies and incentives such as reduction in utility costs were expected to induce growth in bread-winning industries.
Suttar said the budget should have been postponed this year due to the uncertain environment as the Constitution does not mandate a budget when it would cause wide-scale uproar from the business community. The GDP is revised down to negative 1.5pc and around 18.4 million people are expected to be unemployed. Hence, the highly ambitious target of Rs5 trillion in tax collection makes little sense, he added.
Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani said the textile export industry was offered no remedy in the budget to combat against the 17pc sales tax. Exporters had demanded the government to restore zero rating or bring down 17pc general sales tax to 4pc.
He said the government’s financial managers have made this budget in a closed room, without holding any consultation or meeting with real stakeholders.People from all walks of life including civil society, economics, education and political experts here Friday highly praised the second tax free budget 2020-21 of the PTI Government and termed it an inclusive in all respect with maximum relief provided to common man.
Terming the Federal Government budget 2020-21 comprehensive and goal-oriented, economic and business expert, Sumbul Riaz told APP that Prime Minister Imran Khan and his economic team deserve full credit and appreciation for presenting a tax free budget for fiscal year 2020-21 despite the massive economic losses due to coronavirus pandemic.
She said a huge amount of Rs1324 billion were proposed for development projects that would help expedite pace of economic development and provide quality infrastructure to people.
She said prices of daily use items mostly used by common people like tomatoes, pulses, petrol, diesel etc were decreased in the budget and maximum facilities were provided to the taxpayers to broaden tax base.
Misal Khan, a retired Information Officer has also highly praised the Federal Budget 2020-21 and termed it wide-ranging with maximum facilities to poor segment of the society were provided.
He said a huge amount of Rs10 billion were proposed for agriculture development and prevention of locusts in the country, saying locusts attacks has affected agriculture crops in different districts and allocation of such huge amount would help control its attacks.
He said Pakistan was a water stressed country largely depend on River Sindh water for irrigation of thousands acres lands in the provinces mostly in KP, Punjab Sindh and allocation of Rs70 billion for water resources in budget would help bolster agriculture productivity and strengthen food security. He said livestock, horticulture and fruits sectors would also get upward boost.
Misal Khan said Pakistan was facing a massive challenge of COVID-19 since March that put extraordinary pressure on our hospitals and has appreciated allocation of Rs20 billion in the budget for health sector that would help provinces to counter the pandemic.
He said the country can not afford political instability, agitation and protests in the prevailing coronavirus situation and it would have been better if opposition listen to the budget speech with calm instead of raising placards that would pass a positive message of national unity and cohesion against coronavirus worldwide.
Professor Dr Muhammad Naeem, teacher Riaz Khan and former Nazim, Bahadar Khan have also lauded the PTI Government budget and termed it the best budget in the prevailing difficult economic situation.
They said earmarking of Rs5 billion for education reforms, Rs2 billion for Kamayab Jawan Program and Rs1.5 billion for Naya Pakistan Housing Program would help generate employment opportunities and allievate poverty besides improve socioeconomic conditions of masses.
They said Pakistan was currently confronting to massive challenge of COVID-19 affected all segments of society, which could be countered through national unity.
The experts said it was the best budget announced by the present elected Government in the present difficult economic scenario where maximum relief were provided to almost all segments of the society.
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Budget