LCCI gives mixed reaction on Federal Budget 2020-21 - Press Release issued by Lahore Chamber of Commerce and Industry.

Lahore -- June 15, 2020 (PPI-OT)

Following is the text of press release issued by Lahore Chamber of Commerce and Industry (LCCI)

Quote

The Lahore Chamber of Commerce and Industry on Friday has given a mixed reaction on the Federal Budget 2020-21 and called for extraordinary steps to overcome extraordinary challenges in post COVID arena. While addressing a Press Conference soon after the budget speech, the LCCI President Irfan Iqbal Sheikh, flanked by Senior Vice President Ali Hussam Asghar and Vice President Mian Zahid Jawaid Ahmad, said that government did well by presenting a tax-free budget but some relief measures, demanded by the Lahore Chamber of Commerce and Industry, have been ignored. Former LCCI office-bearers and Executive Committee Members were also present on the occasion.

He said that the Lahore Chamber of Commerce and Industry was demanding a cut in markup rate. It should be 4 to 5 percent to bring down the input cost of the industrial sector. He said that no special package has been announced in the budget to boost exports and to remove the hurdles that hampering the growth of exports sector. The LCCI President said that loss-making Public Sector Enterprises are causing huge loss to the national exchequer but no policy has been given on these PSEs in the Federal Budget.

"No policy has been announced to reduce the energy cost that is one of the biggest reasons of high industrial input cost", he said and added that demands of interest free loans to SMEs, further improvement in refunds system, removal or cut in withholding tax, end to advance tax at import stage and help in certification for SMEs have been remained unaccepted in the Federal Budget.

Irfan Iqbal Sheikh said that the Lahore Chamber of Commerce and Industry was expecting withdrawal of discretionary powers and special policies for Halal Food and Information Technology sectors. The LCCI President welcomed allocation of funds for power and water projects and agriculture sector.

He said that exemption of additional custom duties on those tariff lines which are now @ 0% customs duty in tariff, reduction of custom duty on 40 raw materials of various industries, tariff rationalization under National Tariff Policy 2019, by reducing customs duty on 90 tariff lines from 11% to 3% and 0%, allowing the exemption on import of raw material to those Nashiran-e-Quran also who do not have their own in-house...