RECORDER REPORT

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry has termed the proposed federal budget for FY2017-18 as apparently balanced and moderate.

However, the Chamber's representatives said on Friday that they would come up with an official point of view on Saturday (today) after going through the budget documents in detail.

Talking to the media at Federation House, FPCCI president Zubair Tufail described Finance Minister Ishaq Dar's announced decision to resolve the exporters' pending sales tax refund claims with the Federal Board of Revenue as a good omen for the business community.

Quoting the minister, he said all the pending sales tax refunds, whose RPOs were sanctioned by April 30, would be paid in two parts. RPOs up to the value of Rs1 million would be paid by July 15 and the remaining by August 14.

"Payment of pending sales tax refund was major demand of the exporters, and I am confident that the issue would be resolved by the end of August as promised by the minister," he said.

The FPCCI president noted that the government has also announced reduction and exemption in duties on the import of several products, as custom duty on rawhides and skins will be reduced to zero, and the stamping foil used in producing high value added finished leather will also be exempted from customs duty. This will encourage new investment and business activities in the country, he said.

He also hailed the government's reduction in sales tax on seven different types of machinery for use in poultry control sheds from 17 percent to 7 percent, saying this will promote the country's poultry production.

Commenting on the proposed increase in FED on cement from Rs1/kg to Rs1.25/kg, he asked the cement manufacturers to bear the additional burden by themselves as they are making substantial profits from rising demand. But he said he hoped it will leave no impact on cement prices and that the cement industry will absorb the increase in FED.

He urged the government to reduce industrial power tariff in order to reduce the cost of doing business. The chairman of the Rice Exporters Association of Pakistan (REAP), Mehmood Moulvi, said he welcomed the government's decision to allow, in principle, the warehousing of rice outside Pakistan as well. He said he expected this initiative to help enhance the country's rice exports by up to 10 percent. He said REAP is willing to open warehouses in foreign countries.