LCCI Removal of reservation of Business Community FB 2020-21 – DN
By Attaul Mujeeb Zeeshan
Lahore
Removal of the reservation of business community Federal Budget 2020-21 would pave way for collective efforts to cope the ongoing and post-COVID-19 economic challenges.
It was upshot of the speeches delivered at Post Budget 2020-21 session at the Lahore Chamber of Commerce & Industry.
The seminar, which was jointly organized by the LCCI and Lahore Economic Journalists Association, was chaired by the LCCI President Irfan Iqbal Sheikh. While Vice President Mian Zahid Jawaid Ahmad and LEJA President Ashraf Mehtab also spoke on the occasion.
Economy & Businesses
The speakers said that various measures have proposed in the Federal Budget 2020-21 which can have a profound impact on our Economy and Businesses. Government did well by presenting the Budget 2020-21, in really challenging times when our economy has been adversely impacted by the COVID-19 outbreak.
“The business community applauds the government for showing clear intent of promoting industrialization in the country because in the budget, custom duty has been reduced on 40 raw materials of various industries.
Furthermore, the Government has reduced customs duty on 90 tariff lines from 11% to 3% and 0%. The Government has also exempted additional custom duties on those tariff lines which are at 0% customs duty”, said by the LCCI President Irfan Iqbal Sheikh.
Regulatory Duty
He added that to enhance the competitiveness of Iron and Steel Industry in the country, the Government has reduced the regulatory duty from 12.5% and 17.5% to 6% and 11% respectively on Hot Rolled Coils.
These measures are in line with LCCI’s Budget proposals. And would help in making the local industry more competitive by reducing its input cost.
The LCCI President said that the CNIC condition has not abolished as per the demand of Business Community. He recommended that CNIC condition should abolished in the future to facilitate the businesses.
“The reduction in Federal Excise Duty on cement from Rs. 2 per kg to Rs. 1.75 per kg will help to boost the construction sector which would the main source of employment generation. In the post-covid economic scenario. As more than 40 allied industries related to construction industry”, the LCCI President said, and added that eexports the lifeline of Pakistan’s economy.
A strong narrative for enhancing exports has been missing in the Federal Budget 2020-21. The Budget should be export centric, containing strong incentives for our industry to fetch more export revenues.
He said that before the Budget passed by the parliament. Major allocations for the formation of testing labs for our export oriented sectors.
He also advocated a special incentive regime for IT and Halal Food sectors. As they can play an instrumental role in enhancing our exports.
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SMEs For Economy
Irfan Iqbal Sheikh said that SMEs are the backbone of our economy. Moreover LCCI recommended some strong relief measures for the small and micro businesses including support for markup payments, rents for shopkeepers and extension in credit limits of existing businesses etc.
He demanded that these relief measures should incorporated before the Budget approved by the parliament.
He said that the Budget has also remained silent on reducing the energy tariff, for businesses in Pakistan. Which is the highest in the region.
We recommend that energy tariff for all the businesses should capped at 7.5 cent per kwh. In order to reduce, their cost of doing business.
He also recommended that the policy rate should reduced further to 5% in line with the regional economies (e.g. India 4%, Bangladesh 6%, China 3.85%, Sri Lanka 5.5% and Malaysia 2%).