In particular, the FPCCI chief applauded the elimination of the Withholding Tax (WHT) from producers and distributors, which had previously been levied. Nevertheless, FPCCI’s proposal to set WHT at between 0pc and 1pc for all products was partially adopted.
Both agriculture and export-oriented industries were embraced by Irfan in the budget’s mindset. For both domestic and foreign investors, the introduction of a Dispute Resolution Mechanism will be a positive step forward. In order for it to succeed, the government must ensure that it is properly implemented.
According to him, a rise in the tax on banking businesses from 39pc to 42pc (including super tax) was appreciable (as well as a 1pc credit card withholding tax for filers and a 2pc credit card withholding tax for non-filers) as it would deter the outflow of foreign reserves.
He was grateful that agricultural machinery imports were no longer subject to customs taxes. The textile industry will benefit from reduced tariffs on synthetic fibres and exemptions for tractors, agro equipment, wheat, canola, sunflower, rice, and maize seeds. As a result of this, solar panel imports and local supplies will be exempt from sales tax. In addition, the government’s move to expedite the clearance of DLTL is greatly appreciated.
The government has delivered a good budget despite challenging economic conditions, according to Lahore Chamber of Commerce and Industry President Mian Nauman Kabir.
This year’s revenue collection target is Rs7004b, up Rs1400b from the previous year, according to Mian Nauman Kabir. No comment has been made as to whether or not additional burdens will be placed on taxpayers besides those already in place.
He predicted that indirect taxes would rise and that no incentives had been provided for small businesses, export-oriented industries, or a plan to replace imported goods.
Iftikhar Ali Malik, president of the SAARC Chamber of Commerce and Industry, described the 2022-23 government budget as balanced, growth-oriented, and export-oriented, with a package of appealing incentives to boost economic activity.
According to him, the federal government’s budgetary reforms have made it easier for businesses to operate. With the support of these new policies, the economy will be placed on a new course and many of the poorest people will be better off, according to him.
He predicted that with more remittances, economic indicators would rise and GDP growth would pick up dramatically.
According to him, it is well-established that a state’s long-term survival is dependent on its ability to maintain a healthy economy. Following the sensible economic measures, he anticipated that Pakistan would prosper on every level, no matter where it was.
The business community would be relieved by the sensible choice of Prime Minister Shehbaz Sharif, and a cushion of packages will assist increase economic activity and exports.
However, according to Iftikhar Ali Malik, Pakistan’s economy is in a hard phase due to global warming and the Russia-Ukraine conflict and firms are in turmoil and incurring large losses as a result of this political instability. Despite this, he claimed that the government made a series of daring decisions to overcome the problem.
He said that modern approaches for raising per-acre production were urgently needed and that the government had set aside record amounts of money for research and development in order to bring the agricultural industry up to date scientifically by utilizing high-tech hybrid seeds. Malik hoped that the budget would be free of any irritants so that the business community, which provided most of the government’s financial power, would be pleased.
