The Pakistan Business Council (PBC) has urged the government to end the forthcoming budget’s strengthened tax policies in order to draw comparatively more integrated investments and refocus the manufacturing sector into the formal economy.
PBC said raising taxes on the already-taxed sectors will not help the government pursue its socio-economic agenda.
The council said the incoming financing bill 2020 would be in favor of the manufacturing sector as the sector’s recovery will have multiplier effects on the economy. Compared with the services sector, manufacturing workers are mainly in the formal sector.
The PBC said its budget proposals are aimed at reducing people’s and business sufferings that support employment and livelihoods. In the post-COVID-19 era, it hoped that Pakistan’s economy will be able to make a rapid recovery.
“The speed of recovery will rely on restarting the economy to create employment, value-added exports and import substitution, especially in the manufacturing and services sectors.”
The PBC said the budget needs to create an environment that promotes investment in the manufacturing and services sector, job growth, value-added exports, economic reporting and revenue enhancement. The PBC said revenue leakages needs to be plugged in the customs department while full implementation of electronic data exchange with China is required.
Extracted from City42 News