Giving his initial reactions over the 'reforms package', the FPCCI President Daroo Khan Achakzai said that the government has acknowledged much of the apex trade body's recommendations seeking incentives and measures to enhance agriculture sector, Small and Medium Enterprises (SMEs), encourage investment, and exports of the country.
The reforms package - Finance Supplementary (Second Amendment) Bill, 2019 was presented by the Federal Finance Minister Asad Umer before the National Assembly in Islamabad on Wednesday evening. The FPCCI president welcomed the proposed reduction on interest rate at the agricultural loans from 39 percent to 20 percent, and the reduction on tax for the SME sector from 39 percent to 20 percent. This decision he said would help encourage business activity by low income investors and the youth.
The proposed reduction on the income tax on housing schemes for low income people from 39 percent to 20 would encourage the housing sector. It is also the manifesto of PTI-led Federal Government to construct 5 million such houses for the middle and lower middle class of the country, he said. He also appreciated the government for introducing an interest-free revolving credit of Rs. 5 billion.
Senior Vice President FPCCI Syed Mazhar Ali on this occasion welcomed the government's move of exempting the investments in solar panels and wind turbines from duties and taxation for five years, and reduction (and abolishment in some cases) of duties on raw materials to support export industries. The traders appreciated the government for exempting the small businesses from submitting withholding tax returns every month. The Finance Minister has proposed that such business will now submit withholding tax twice every year.