News
Sunday, May 22, 2011
Businessmen give proposals for revival of economy
* Call for developing alternate means of power generation, eliminating circular debt, lowering markup, curtailing non-development expenditures
Staff Report
LAHORE: A group of businessmen and industrialists have suggested a seven-point formula to the government to turn the forthcoming budget into a business-friendly document in order to pave way for the economic revival of the country within a shortest possible time.
The formula was announced by LCCI Founders Group on Saturday and it included developing alternate means of power generation, eliminating circular debt, availability of cheaper money for trade and industry by lowering markup, curtailing non-development expenditures and bringing down the rate of the general sales tax to 12 percent.
Speaking at the inauguration of new Founders office at Big City Plaza, Liberty Market on Saturday, the group chairman, Mian Tajammal Hussain, said that after a number of meetings, Founders Group had reached a conclusion on seven areas that needed immediate attention of the policy makers.
He said it was the duty of the government to develop alternate means of power generation. “Amongst the alternate sources of energy, biomass shows tremendous potential,” he said, adding, “The total capacity in biomass is 22,800 MW in Pakistan. Little technical training is required to make use of this resource. Alternate Energy Board should concentrate on it to establish these units in villages.”
He said that coal, hydropower and biomass would produce energy at a flat rate of less than Rs 5 per unit for the next 20 years, helping the manufacturing industry to grow unabated with no taxation on inputs and availability of technically better quality workforce.
“Increased yield in cotton will support local textile industry to take a leading role in the market,” he added.
LCCI former presidents, including Syed Mohsin Raza Bukhari, Iftikhar Ali Malik, Salahuddin Ahmad Sahaf, Tariq Hameed, Mian Muhammad Ashraf, Ilyas M Chaudhry, Sheikh Muhammad Asif, Mian Misbahur Rehman, Shahid Hassan Sheikh, LCCI sitting President Shahzad Ali Malik, LCCI former SVPs Mian Muhammad Jehangir and Farooq Iftikhar were prominent among the speakers.
The chairman said that as an immediate step, the government should eliminate circular debt so that the gap between demand and supply could be curtailed.
Secondly, he said that line losses and power theft should be controlled. “Last but not the least the government should focus on the construction of water reservoirs,” he opined.
“It is advised to the state to withdraw all profiteering and taxation from the energy sector. Any new projects with public-private partnership should ensure that they work on no-profit-no-loss basis,” he elaborated.
He said in order to deal with unemployment and fast escalating inflation, the government should immediately direct the State Bank of Pakistan to ensure availability of cheaper money for the trade and industry by lowering markup to a single digit.
Elaborating further, Hussain said that with a single digit markup, the government actually would be expediting the process of industrialisation in the country. “Resultantly, there will be more jobs for the unemployed while inflation will also come down with the improvement of supply chain of consumer goods,” he explained.
On fast increasing oil prices in the international market, Founders Group chairman said that the government should immediately cut duties and taxes on it. “Definitely, in order to bring down taxes and duties on oil products, the government will have to curtail its non-development expenditures. It is a common phenomenon that untoward economic situations are dealt through special measures,” he stressed. Hussain also endorsed the LCCI demand for bringing down the rate of general sales tax to 12 percent as the high rate of GST in vogue in the country was discouraging people from coming into the tax net.
He said that all local chambers could help the state in recovering and documenting the economy so that only direct taxes could be levied and indirect taxation could be avoided. “These should be supported by the Regional Tax Advisory Committees. Income of agricultural produce that falls in the taxable income range should be taxed,” he said.
Courtesy www.dailytimes.com.pk