United Business Group (UBG) Wednesday jointly putting forward a set of 40 pre budget proposals demanded the government for tax free federal budget 2020-21 besides seeking special package of incentives to accelerate the pace of economic activities in wake of pandemic of corona virus.
Unfolding the salient features of proposals, UBG Central Chairman Iftikhar Ali Malik after chairing a high level meeting of the core committee through video conference said UBG suggested the government to revamp taxation system on modern line to accommodate the business community.
“The objectives of budget proposals are revamping taxation system, documentation of economy, employment generation through industrialization, promoting a responsive and equitable taxation system, infrastructure development and trickledown effect of the fiscal space to the grass root level,” adding he said the government should reduce sales tax rate gradually to single digit, to abolish all duty and taxes on the imports of all machinery, to reduce further tax on unregistered person from three percent to one percent and imposition of taxes on final goods.
Iftikhar Malik also proposed that customs duties on all raw materials should be low or zero. The government must eliminate regulatory duties and additional customs duty on raw materials so that the local industry could compete with the smuggled items and mitigate the effect of low tariff free trade agreements.
UBG patron in Chief SM Muneer,Khalid Tawab,Zubair Tufail,Feroze,Mian Muhammad Adress ,Rehmat Ullah Javed,Malik Sohail Hussain, Hameed Akhtar Chada,Ilyas Bilour and Daroo Khan Achakzai besides Muslim Khan Binoveri and other participated in the live video conference.
He further said they complied the proposals after seeking complete feedback from all business sectors to meet the challenges being faced by trade and industry due to the outbreak of Covid-19, as its severe and adverse impacts on various aspects of Pakistan’s economy were quite discernible.
“These impacts might lead to negative growth rate, deterioration in current and fiscal balance, disruption in supply chain, and increased unemployment etc,” he added.
