Staff Reporter
Karachi
The Karachi Chamber of Commerce & Industry (KCCI) was given assurance by Dr. Hafeez Shaikh that the upcoming budget for FY2020-21 will be a Relief Budget and most of the recommendations of KCCI will be adopted in the budgetary measures to be announced by the government on 12th June 2020. The assurance was given in a meeting held on Monday via video link between the KCCI’s team led by Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli with Advisor to Prime Minister on Finance and Revenue Dr. Hafeez Shaikh, to deliberate on the proposals of KCCI for the Federal Budget 2020-21. On KCCI’s side, Siraj Teli was accompanied by President KCCI Agha Shahab Ahmed Khan and Former Senior Vice President Ibrahim Kasumbi.
Officials of the Finance Ministry and Chairperson Federal Board of Revenue Ms. Nausheen Jawed were also present at the meeting which lasted for more than 40 minutes. President KCCI Agha Shahab Ahmed Khan stated that the budget for the year 2020-21 is being prepared at a time when the country is facing an unprecedented crisis due to Covid-19 pandemic and every business and industry has been badly affected.
In these extraordinary circumstances, people of Pakistan in general and the business community in particular are looking forward to a budget which provides substantial relief measures to rescue the economy from the brink of disaster. Chairman BMG Siraj Teli highlighted major macroeconomic issues during the meeting and elaborated on the measures which KCCI has recommended to rescue the trade and industry from devastating impact of a global economic meltdown caused by the spread of Covid-19 pandemic.
He reiterated that today the Name of the Game is survival of trade and industry which should be on top priority in the budget rather than the revenues. Revenues can be recovered later only if the trade and industry survive hence the budget should focus on relief through these macroeconomic measures. He said that the domestic economy, which contributes 92 percent to the GDP and provides bulk of employment and revenues, has not received the much-needed relief and financial assistance.
He appreciated the reduction in prices of Petroleum products which was earlier proposed by KCCI and also the financial assistance given to the poor segment of population through Ehsaas program which provided much needed relief to the people. Siraj Teli proposed that an across the board reduction of 50% in the rates of all Taxes including Income Tax, Sales Tax, FED and Customs duties on capital goods and raw materials should be announced in the Budget for one year.
