June 27, 2022 – PPI News Agency

Realtors demand early withdrawal of high taxes on real estate sector

Islamabad, June 27, 2022 (PPI-OT):Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce and Industry (ICCI), said that the construction industry plays a key role in the economic development of the economy, but the government has hiked taxes on real estate and construction sector in the new budget that would badly affect business activities of this sector and prove more harmful to the economy. He stressed that the government should withdraw high taxes on realtors to save this sector from further troubles. He said this while addressing a meeting of ICCI Real Estate Committee that was convened to discuss new tax measures on the real estate sector through the new budget.

Muhammad Shakeel Munir said that around 74 industries were linked with construction sector directly and indirectly and increasing taxes would slowdown the business of all industries of construction industry. He urged that the government should urgently engage the stakeholders of the real estate sector in consultation to address their concerns on tax matters. He further said businesses in Islamabad should be allowed to remain open till 11:00 pm as has been done in Karachi, especially during Eid season. He further said that the government should ban lighting of all billboards at night to save energy instead of early closure of businesses and markets.

Muhammad Masood, Convener, ICCI Real Estate Committee said that the new budget has increased advance tax on property transactions from 1% to 2% for filers, capital gain tax has been raised to 15% and imposed 1% deem tax on deemed rental income. However, all these tax measures would badly affect the business activities of the real estate sector and cause more unemployment. Therefore, he demanded that the government should withdraw all new taxes to save the construction industry from further troubles. He said that the government should increase taxes for non-filers but avoid imposing more taxes on the filers.

Zubair Ahmed Malik and Muhammad Ejaz Abbasi, former Presidents ICCI said that hike in taxes on real estate sector has jeopardizes its survival and added that the collapse of real estate sector would ultimately lead to the collapse of the overall economy. They stressed that the government should engage with the stakeholders of the real estate sector to save it from the negative impact of new tax measures.

Jamshaid Akhtar Sheikh Senior Vice President and Muhammad Faheem Khan Vice President ICCI said that the business community was not against the payment of taxes, but they should not be subjected to unaffordable taxes as it would cause the closure of businesses and increase joblessness in the country.

Tahir Abbasi, Muhammad Naveed Malik, Ashfaq Chatha, Khalid Chaudhry, Mian Maqbool, Khalid Mehmood, Mian Razzak, Wasil Ramzan, Ch. Fayyaz, Naeem Iqbal, Rana Altaf, Sheikh Abdul Waheed, Ali Hassan, Ch. Nadeem ud Din and others also spoke at the occasion and called upon the government to withdraw high taxes on the real estate sector to save the economy from falling into a deep recession.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk

UBG Invites proposals from Trade Bodies for removal of anomalies of Budget

Karachi, June 27, 2022 (PPI-OT):United Business Group (UBG) Budget Anomaly Committee will be holding a meeting with the Finance Minister Miftah Ismail in the next fortnight to discuss the anomalies of the Federal Budget 2022-23. President UBG Zubair Tufail has requested all Trade Bodies through a circular to identify the anomalies of their specific sectors in the Budget and provide their Proposals/suggestions/Recommendation, supported by fact and figure, to over-come/remove them so the Federal Budget 2022-23 is made business friendly and to improve its impact on economy.

For more information, contact:
United Business Group (UBG)
Room No: 203, Second Floor,
Aiwan-e-Sanat Plot No.ST-4/2, Sector 23,
Korangi Industrial Area, Karachi, Pakistan
Tel: +92-21 35062200
Cell: +92-321-8261426

Super tax, market closure decisions lauded

Islamabad, June 27, 2022 (PPI-OT):The Pakistan Economy Watch (PEW) on Sunday said it supports the decision of the government to impose of super tax on major industries and close markets at 9 pm. However, these measures could be improved by closing markets at dusk as practised in many developed countries while super tax must be imposed on other sectors, it said. National security is at stake but industrialists and traders are wailing over taxes which is irresponsibility, said Dr. Murtaza Mughal, President of PEW.

Dozens of countries had imposed super tax and emergency tax on the affluent class as soon as the outbreak of Coronavirus started which is still being collected but the burden of the epidemic in Pakistan was put on the people instead of the rich, he said. The industrial elite wants the entire burden of saving the country to be put on the people even at this critical stage, which is the height of indifference and irresponsibility, he added.

In a statement issued here, Dr Murtaza Mughal said that it was impossible to ensure economic self-sufficiency and reduce poverty and inflation without taxing the nobility. This tax should also be levied on more sectors and the process of granting exemptions and unnecessary concessions to the agricultural elite, wholesalers and retailers should be stopped.

He said that the super tax would benefit the country and the nation only if the big industries are not allowed to increase the prices of their goods otherwise they will increase the prices of their goods and the entire burden of this tax will fall on the consumers. The government’s plan to close markets at 9 pm was correct but could be improved because in dozens of developed countries where there is no crisis markets are closed by evening and this can happen in Pakistan too.

He said that traders and industrialists have been pressuring the government to reverse the decisions but no compromise should be made on it. If the government stops keeping the failed state-owned companies artificially alive, it is possible to double the revenue compared to the super tax.

For more information, contact:
President,
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

Agri emergency demanded as country facing famine

Islamabad, June 27, 2022 (PPI-OT):Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Sunday said the United Nations has issued famine warnings so there is an urgent need to declare an agricultural emergency in Pakistan to save the people from starvation. Millions of people in 34 other countries are on the brink of famine and Pakistan will face dire consequences if enormous investments are not made immediately to ensure food security, he said.

Shahid Rasheed Butt said that along with wheat and sugarcane, the support price of other important crops should also be announced and incentives should be given to small farmers instead of landlords. In a statement issued here today, the business leader said that the world is facing the worst food crisis since World War II but necessary steps are not being taken due to which the prices of agricultural commodities and hunger are rising all over the world.

The government of Pakistan has not taken the steps expected in the recent federal budget as the government did nothing in the previous budget to promote the important agriculture sector. Neglecting the agriculture sector is resulting in imports worth $14 billion while the prices of fertilizers, seeds, pesticides and other are rising continuously.

No relief has been provided to the sector called backbone of the economy, which will affect the growth rate and further worsen the food security situation in the country, he warned. Mr. Butt said that agricultural loans and subsidies find their way to the pockets of landed gentry while small farmers get nothing which must be reversed to develop this important sector. The world is focusing on the use of certified seeds to increase agricultural production, but there is no check on the sale of sub-standard seeds in Pakistan, which is the reason for reduced production and the plight of farmers.

Fifty percent of the water allocated for agriculture is wasted which if saved can be used to increase the production and income of the farmers, he said, adding that concrete measures are required regarding agricultural insurance so that farmers are not affected in case of climate change and natural disasters.

For more information, contact:
Dr. Shahid Rasheed Butt
Consul General Ghana
Former President ICCI
Former Patron ICST
Tel: +92-333-5132199, +92-51-2822571

Zhao Shireen, Consul General China appreciated the efforts of PCJCCI

Lahore, June 27, 2022 (PPI-OT):Mr. Zhao Shireen, Consul General China visited Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) yesterday. Mr. Ehsan Choudhry, Senior Vice President PCJCCI, Mr. Sarfaraz Butt, Vice President PCJCCI, Mr. Salahuddin Hanif, Secretary General PCJCCI welcomed him along with other executive members of PCJCCI. The visit was followed by a press conference which was attended by many top-notch businessmen from China and Pakistan which includes Mr. Tan Zidiong, CEO Norinco Intl. Mr. Alen, Representative, Chen Hui Company, Mr. Sew, Representative Miniso Pakistan, Mr. Zhang Hin Ping, Representative, Lahore Overseas Chinese Association, Mr. Li Huaxin, General Manager, Xinjiang Jinghua Seed, Mr. Khalid Raffique Choudhry, EC Member PCJCCI, Mr. Moazam Ghurki, CEO Intute PVT. Ltd, Mr. Daud Ahmed, EC Member PCJCCI, Mr. Zaki Aijaz, CEO Roshan Packages.

Mr. Zhao Shireen Counsel General of China appreciated the working of PCJCCI related to regional connectivity and bilateral trade. He also praised various initiatives of chamber which includes; Pak China Knowledge Portal, China-Way magazine, Chinese language courses and Pak China Technology Gateway. He apprised that we stand with Pakistan at this hour of crisis and economic instability. He also said that China’s foreign policy is crystal clear and unbiased; we do not interfere in other country’s economic and foreign affairs around the world nor do we want to see interference by other foreign powers in to China’s.

We assure our fullest mutual support and help for Pakistan without any discrimination or biasedness for any political party. Upon questioning about CPEC he said that Pakistan is the owner of all the CPEC projects and we are here to facilitate them in all aspects. The trade, investment, business between two nations could be much better if we work with unity and harmony. So here I will raise my motto; “Let’s work together; let’s grow together”.

Mr. Ehsan Choudhry, Senior Vice President PCJCCI said while his welcome address that China has emerged as second largest economy of the world and international experts are envisaging a far bigger role for China on the economic horizon of the world. The way China managed the global financial crisis is commendable and an example of hard work for all of us.

Mr. Wang Zihai, President PCJCCI also joined the press conference through zoom and he said that Pakistan China Joint Chamber of Commerce and Industry is resolute to serve as a model chamber and a vibrant platform for promoting mutual investment and friendship between Pakistan and China. Our objective is to adopt an innovative stratagem to promote trade and development not only between Pakistan and China but also over the entire region in order to ensure future stability, security and prosperity for all of us.

Mr. Sarfaraz Butt, Vice President PCJCCI and Mr. Salahuddin Hanif, Secretary General thanked the Consul General China for his precious time and said that we are endeavouring to build a better and prosperous future of Pakistan with the cooperation of China.

For more information, contact:
Media Manager,
Pakistan China Joint Chamber of Commerce and Industry (PCJCCI)
Mega Tower, 309 – 6th Floor, Main Boulevard, Gulberg II,
Lahore, Punjab – Pakistan
Tel: +92-42-35777460-02, +92-42-37032203, +92-42-35874353
Fax: +92-42-35777524
Cell: +92-324-4925611
Email: info@pcjcci.org
Website: www.pcjcci.org

ICCI rejects 10% super tax on corporate sector and calls for its withdrawal

Islamabad, June 27, 2022 (PPI-OT):The Islamabad Chamber of Commerce and Industry (ICCI) has rejected the imposition of 10 percent super tax by the government on the corporate sector as it would have a serious impact on the large scale industries besides sending negative signals to the potential local and foreign investors. It called upon the government to immediately withdraw super tax to save the industrial sector from further troubles.

Muhammad Shakeel Munir, President, ICCI said that the corporate sector was already paying 29 percent tax and providing employment to a large number of people, but the imposition of 10 percent super tax would put a cumulative burden of 39 percent tax on it, which would not be affordable for it. He said the ultimate burden of super tax on cement, steel, banking, airlines, textile, automobile, sugar mills, beverages, oil and gas, fertilizer, cigarettes, chemicals and LNG would be passed on to the end consumers and bring a new wave of high inflation in the country. He said that this measure would discourage the potential investors for investing in Pakistan, dry up local and foreign investment and badly affect the expansion of business ventures in the country.

ICCI President said that the government has already taken some very harsh measures like historic hike in the prices of petroleum products and utility tariffs, increase in policy interest rate to 13.75 percent, which have caused a big surge in the cost of doing business and made the private sector very uncompetitive. The imposition of a super tax would badly affect the growth of the corporate sector and instead of improving the economy, it would plunge the economy into a deep recession.

Jamshaid Akhtar Sheikh, Senior Vice President and Muhammad Faheem Khan Vice President ICCI said that instead of putting high tax burden on the existing taxpayers in one budget, the government should adopt a gradual approach for rationalization of taxes and focus on broadening the tax base in order to improve the tax revenue of the country. They stressed that the government should always consult with the stakeholders before taking such harsh measures to save the economy from further problems as unilateral tax measures will destroy the businesses, reduce their competitiveness and fuel the inflation like never before through its multiplier effect.

UNISAME advises SMEs to seize opportunity and urges SMEDA and TDAP to Join Hands with UNISAME

Karachi, June 27, 2022 (PPI-OT):The Union of Small and Medium Enterprises (UNISAME) has advised SMEs especially the medium and upper medium to come forward and set up manufacturing units and capture local and overseas markets as imports have become nonviable in Pakistan due to rupee depreciation which is making imports unaffordable but favouring exports.

UNISAME president Zulfikar Thaver and UNISAME Council members were of the firm opinion that it is the best time to substitute imports of foodstuffs, light engineering, durables and general merchandise with quality goods of international bench mark. Thaver urged the Small and Medium Enterprises Development Authority (SMEDA) to focus on this and make it happen by impressing upon the government to facilitate, encourage, support and motivate the small to medium sized entrepreneurs with banking, leasing, insurance and logistics.

UNISAME Council members endorsed the advise unanimously and assured SMEDA of full support in implementing the plan to create awareness that now is the time to set up manufacturing units of all previously imported items of food, clothing and electronics and this opportunity must not be missed.

In this connection UNISAME Council also stressed on marketing support and urged Ahsan Ali Mangi the secretary of the Trade Development Authority of Pakistan (TDAP) to convene a meeting of quality goods manufacturers belonging to the SME sector and motivate them to enter global markets and raise their standards to international bench marks for domestic import substitution as well as meet export market requirements.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street, Phase IV, D.H.A.,
Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307
Email: unisame@gmail.com
Website: http://www.unisame.org/