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HYDERABAD: Opposing increase in tax slabs, Hyderabad Chamber of Commerce and Industry (HCCI) president Adeel Siddiqui has said that the government should broaden its tax net instead.
In such conditions, he said, traders and businessmen would have no option but to migrate from Pakistan.
In his reaction over federal budget 2023-24, he said on Monday that finance bill 2023-24 was amended by the government, which could not be appreciated as far as increase in tax slabs was concerned. He explained that in view of the amendment, the tax slab was increased from 20pc to 22.5pc for those earning Rs2.4m per annum, from 25pc to 27.5pc for having income of Rs3.6m annually and people having taxable income of Rs6m per annum would be paying 35pc instead of 32.5pc tax now. He said that unregistered persons had been taxed by another 4pc, which was previously 3pc.
He said the business community did not support the increase in slabs as it would not be helpful; Pakistan’s economy could only be strengthened by broadening tax net. “In fact 1.6m taxpayers are being pressed to pay more tax. This way, traders and businessmen are being compelled to leave the country,” he said.
Says such measures force businessmen to migrate from Pakistan
He urged the government to take prudent decisions as it was great injustice with businessmen who were paying taxes. The business community, he suggested, should be offered incentives.
The HCCI head said indirect taxation was always detrimental to economy and the present economic conditions did not allow the government to take wrong decisions.
He said that taking care of industry and businesses had become difficult. The bank markup of 22pc, he said, would be detrimental to industrialisation and the exports sector. Industries were already facing closure when the markup was 21pc and it had been increased to 22pc, he said, adding that the raise would put more burden on the industrial sector.
Mr Siddiqui feared that traders and industrialists would be facing default in the first quarter of the new fiscal year. He believed that increased markup, expensive utilities, increase in tax slabs would be the factors behind closure of industries.
He said the federal and provincial governments were unable to provide support to industrial infrastructure and industrialists were realising that more investment was economically harmful for them.
He said that one industrial unit provided jobs to 2,000 labourers and the increase in the tax slabs and bank markup would not go down well with the industrial sector. He called upon the government to end those policies as Pakistan’s economy could not afford wrong measures.