MUHAMMAD ALI

KARACHI: Business community and tax experts have expressed mixed reactions over proposed federal budget 2017-18.

Talking to Business Recorder, Abdul Qadir Memon, former president Pakistan Tax Bar Association (PTBA) has termed a reasonable budget for tax year 2017-18.

He lauded the introduction of tax neutrality through special provisions to promote and incentivize Islamic banking; adding that the concept of non-filer was remained continued in this proposed federal budget, which he termed positive initiative.

Moreover, Memon said that the proposed replacement of three tier rate structure for capital gains tax based upon the holding period of securities with a flat/single rate of tax of 15 per cent for filers and 20 per cent for non-filers was also appreciated, terming the proposed federal budget 2017-18 as reasonable.

Meanwhile, Adnan Mufti Parnter Sheka and Mufti lambasted the federal government for not taking initiative for facilitation. "On one hand, the government claims to have enrolled 0.5 million new taxpayers in ongoing year but proposed to withdraw rebate on the other.

Replying to a question, Mufti said that this budget would hit the common man as the government had taken revenue measures with no incentives besides neglecting structural improvement in this budget completely.

Arshad Jamal, senior vice chairman All Pakistan Customs Agents Association (APCAA) said that transport and construction were utterly ignored in this budget; adding that government should have exempted import duty on dumpers, goods carriers and construction machinery in order to protect local industries, especially in the context of CPEC. "There is nothing good in this budget," he maintained.

Similarly, Sr Vice Chairman Association of Builders and Developers of Pakistan (ABAD) Hasan Bakshi said that increase FED on cement, abolishment of Final Tax Regime (FTR) and impose a flat rate of capital gain tax would make difficulties more severe for construction industry.

He opined that the said revenue measures would not only increase the cost of construction in the country but also block billions of rupees investments in this sector.

Ali Rahim former president Karachi Tax Bar Association (KTBA) said that government through this budget appeared to be more relying on indirect taxes instead of direct taxes in next fiscal year, which may result increasing inflation.