Asad Umer agrees with LCCI proposals

Lahore (Pakistan Point News / Online - 14th June, 2019) Zero-rating should be deferred till refund mechanism is in placed.This was stated by the LCCI President Almas Hyder while taking to Chairman National Assembly Standing Committee on Finance, Revenue & Economic Affairs Asad Umer.

Asad Umer agreed with the apprehensions & proposals of the LCCI President Almas Hyder on zero-rated regime, assets declaration scheme, high cost of doing business, high discount rate, economic reforms, current account deficit, duties & taxes on raw materials.

He said that recommendations would be formed on the guidelines provide by the LCCI President Almas Hyder."I would play the role of facilitator for the business community for removing their genuine reservations on Federal Budget 2019-20", Asad Umer said and added that our aim is economic growth with the help of business community.

He informed the participants of the meeting that as Federal Finance Minister, he resisted against strict conditions of IMF against borrowing. "IMF was forcing me to give a jump of 600 basis points in markup rates but I refused that program to guard the interests of industry", Asad Umer said.

To a question, he said that privatization of State Owned Enterprises is not a solution. It is a part of solution to the issues being faced by the SOEs.He also agreed with the LCCI President's proposal that system of refunds should be demonstrated first and should be implemented after satisfaction and also agreed that people attached with jewelry business should be allowed to avail assets declaration scheme.

LCCI President Almas Hyder said that reservations of business community must be addressed before approval of Federal Budget 2019-20.He said that withdrawal of zero-rating has become a major concern for the business community and they are feared that huge working capital would be stuck-up because of this measure.

He said that zero-rating facility should be restored immediately and should not be withdrawn until a proper mechanism of refunds is devised."Government should introduce an automatic and efficient system of Refund Payments whereby 75% of the Refunds should be paid through the Bank upon the issuance of the attested copy of Bill of Lading while the remaining 25% of Refunds should be paid through the Banks against the export proceeds after 30 days", the LCCI President suggested.

Almas Hyder said that government has abolished duties on 1600 items including raw materials on the demand of Lahore Chamber of Commerce & Industry. He said that government should abolish regulatory duty, custom duty and additional custom duty on all 2800 items to make industry competitive.

The LCCI President said that people attached with jewelry business should be allowed to avail asset declaration scheme."Country cannot afford to spend huge amount on the loss-making state owned enterprises", Almas Hyder said and added these SOEs are eating up revenue collected from taxpayers.

He said that various authorities have been shifted to the provinces after 18th amendment but ministries are still working at federal level with changed Names. He said that these unnecessary expenditures would have to be reduced to bring economy back on rails.

LCCI Senior Vice President Khawaja Shahzad Nasir, Vice President Faheem-ur-Rehman Saigal, former Presidents Iftikhar Ali Malik, Mian Anjum Nisar, Sohail Lashari, former Senior Vice Presidents Irfan Iqbal Sheikh, Amjad Ali Jawa, Khawaja Khawar Rasheed, EC members Mian Zahid Javed, Adeeb Iqbal Sheikh, Aasia Saail Khan, Usman Khalid, Waseem Chawla spoke on the occasion.