FCCI Hopeful For Reasonable Relief In Federal Budget 2024-25
Despite significant economic challenges, the Federal government is making serious efforts to reduce electricity tariffs, with the hope of providing reasonable relief to consumers in the federal budget for 2024-25, stated Dr. Khurram Tariq, President of the Faisalabad Chamber of Commerce & Industry (FCCI).
During a pre-budget press conference on Thursday, Dr. Tariq emphasized that while industrialists do not seek subsidies, they cannot bear the burden of cross-subsidies for other consumers. He pointed out that the industrial sector is currently shouldering a substantial burden of Rs. 245 billion as cross-subsidies for 60% of the country’s electricity consumers. He urged the government to address this imbalance to prevent the closure of industries.
Dr. Tariq also expressed concern over the unequal gas tariffs among provinces and called for uniform gas rates across all provinces and sectors. He opposed the sales tax registration for high-turnover sectors, advocating instead for their inclusion in the fixed tax regime, which he believes would result in higher tax revenues for the government.
Addressing the plight of the SME sector, Dr. Tariq revealed that 26% of units, which contributed 20-25% to exports, have shut down. He urged the government to allow duty-free import of old machinery to help SMEs upgrade and compete internationally.
He expressed gratitude to the Prime Minister for his special focus on exports, noting that the PM holds fortnightly meetings to address immediate issues and enhance exports. The PM has also directed the clearing of all deferred DLTL claims to improve exporters’ liquidity.
Dr. Tariq highlighted the opportunities presented by potential heavy duties on Chinese exports by the US and EU, urging the government to facilitate exporters by paying refunds and rebate claims, enabling them to secure maximum export orders.
He also voiced concerns over persistent smuggling and called for broadening the tax base to alleviate the burden on current taxpayers.
Senior Vice President FCCI, Dr. Sajjad Arshad, emphasized the need for the government to improve the business environment, as many traders are either changing their businesses or relocating to other countries due to the current conditions. He noted that 8,300 Pakistanis have registered businesses in Dubai due to its favorable business climate.
Dr. Arshad pointed out the disparity in tax contributions, noting that while the industrial sector accounts for 21% of GDP but pays 68% of taxes, the agricultural sector, which contributes 25% to GDP, only pays 1% in taxes. He called for uniform and consistent policies to avert an economic crisis.
Vice President FCCI, Hajji Muhammad Aslam Bhalli, concluded with a vote of thanks, hoping that journalists would highlight these issues to senior officials to help mitigate the country’s prolonged crisis.