FPCCI, UBG present joint 40 pre-budget proposals to finance minister.

ISLAMABAD -- Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and United Business Group (UBG) Wednesday jointly presented a set of 40 pre-budget proposals to Federal Finance Minister Asad Umar.

They sought special incentives package to accelerate the pace of economic activities besides demanding curtail in discretionary power of tax collectors in addition to relief in taxation, duties and income tax as well as broadening tax base on top priority.

FPCCI President Engineer Daroo Khan Achakzai while unfolding the salient features of proposals said that FPCCI and UBG suggested the government to revamp taxation system on modern line for accommodating the business community," says a press release issued here on Wednesday.

'The objectives of FPCCI budget proposals are revamping tax system, documentation of economy, employment generation through industrialization, promoting a responsive and equitable tax system, infrastructure development and trickled down effect of the fiscal space to the grassroots level.

He urged the government for reducing the sales tax rate gradually from current 17 percent to single digit, to abolish all duty and taxes on the imports of all machinery, to reduce further tax on unregistered persons from three percent to one percent and imposition of taxes on final goods.

He proposed that customs duties on all raw materials should be low or zero. The government must eliminate regulatory duties and additional customs duty on raw materials so that the local industry could compete with the smuggled items and mitigate the effect of low tariff free trade agreements.

He said before giving final shape to proposals, all affiliated chambers, trade bodies, associations and 20 members...