Budget lacks motivation: PTA-Texglobe

KARACHI (June 10 2010): Central Chairman, Pakistan Tanners Association (PTA) Gulzar Firoz has said that the Federal Budget has no important salient features and lacks motivation either for export or for country's industrialisation. In a statement, he said that there are some positive features but in particular the proposals of Leather Sector have been totally ignored.

He welcomed the deferment of VAT till 1st October'2010, however, he emphasised that during these 3-months this matter should be thoroughly discussed with the concerned stakeholders. It will be detrimental for the five sectors including Leather Sector which are "Zero Rated" at present, are brought into VAT. He requested the Finance Minister to immediately call the representatives of the Five Sectors to discuss this matter.

Our proposal to reduce Duty on the main raw materials being used in leather industry has been ignored. These items are Chromium Sulphate, Formic Acid, Fat Liquors. He requested the Chairman, FBR to reconsider our proposals favourably. He also strongly opposed the levy of 0.3 percent on issue of Pay Order, Online Transfer, Demand Draft (though pay order is already deposited with the Collector of Customs for Duty purpose) etc.

He also criticised the heavy penalties imposed for default of Tax Returns and deposit of tax due. He welcomed the reduction of Income Tax (Withholding Tax) on Electricity Bills from 10 to 5. However, he expressed concern over further increase in power tariff from six paisa to Rs 1.70 per unit allowed by Nepra to KESC, which is quite unfair and will affect the industrial growth. Gulzar Firoz stressed the need to make the budget export friendly in real sense to save the export oriented industries from recurring business loss.-PR