Financial analysts, businessmen disappointed with ‘less directionless’ 2020-21 budget
Financial analysts, soon after the government rolled out the budget, termed its disappointment as a “directionless” budget.
‘Nothing extraordinary’ – Financial analyst Khurram Shahzad
Speaking from Live news Just after the budget presentation by Industry and Production Minister Hammad Azhar, financial analyst Khurram Shahzad said that nothing in the budget has been normalized, although tax relief on custom and import duties has been given and relief in hard-hit hotels too is. Tax Terms.
Shahzad said that despite the new taxes, it would be difficult to maintain the GDP rate with a 2% deficit and a 6.5% inflation rate, as these factors would make the FBR have a harder time achieving its target which is 24% of the total tax. . collection.
The analyst welcomed the government’s move not to increase pension and salary rates this year, stating that in previous years the government has been increasing these un-funded pensions, for which there is no source of revenue. To generate.
“Most of the people receiving pensions are not even alive, therefore, cutting this spending will reduce the economy in times of epidemics,” he said.
He said that the government has a program to deal with bare level poverty.
‘Status Budget’ – Businessman Mian Zahid Hussain
Another analyst, businessman Mian Zahid Hussain, said that this is a status quo budget that appears quite “directionless”.
“Our post-Kovid-19 economy will need to jump and I did not find any such recommendations in the budget.”
He said, “We had proposed a zero rating (exemption in VAT) for some items and we did not mention it. Nothing for SMEs and nothing for governance. However, we have many for revenue. See the remedy, ”he said.
Hussein said that it seems that there is no good news for the business community and “I am sure there is some bad news”.
The businessman said, “The audit measures they adopted and the third party information and appeals amendments and sales tax amendments and other amendments do not seem to do anything particularly good for the business community.”
“And we did not ask for any concessions. We asked for the creation of a conducive environment for convenience and business. So there is nothing satisfactory there. Yes, they have raised the threshold for purchases that would require CNIC which I would Seems. They should have been eliminated, “he said.
He said that the business community wanted the audit to be deferred for a year or two but it seems to me that the (time period) has been reduced further.
“Non-revenue income of Rs 650 billion allocated – from here they will get it? Last year they put Rs 150 billion for privatization. How do they expect privatization? How will steel mills be revived? Railways and How will the PIA be revived ”he questioned. Expressing dissatisfaction.
‘Unreachable’ – expert on tax issues, Abdul Qadir Memon
Tax issues expert Abdul Qadir Memon said the budget outlay is more than the allocation this time, adding that the targets are also quite inaccessible.
He admitted that many exemptions have been given this year in terms of property income and withholding.
‘Preferred’ area priority for relief – industrialist Siraj Qasim Teli
Industrialist Siraj Qasim Teli said that the government mentioned coronoviruses mentioned several times in the budget, however, it failed to implement any policies in view of the situation.
Teli said that the main focus in terms of relief was the construction sector and the cement and tourism industry.
“These are the favorite areas of Khan Saheb, all the other local industries are suffering. This is a disappointing budget for the business community.
‘Ignoring Small Businesses’ – APAT Secretary General Naeem Mir
All Pakistan Anjuman-e-Tajran (APAT) general secretary Naeem Mir rejected the 2020-21 budget, stating that small businesses were ignored and offered a copy of CNIC for the transaction The bet was encouraging an uncontrolled economy.
“CNIC’s position should have been canceled amid the crisis of coronovirus”, Mir said, noting that no easy lending scheme was introduced for small business owners.
He said that small businesses employ about 40% of the workforce.
APAT’s top official said “poor government policies have shrunk the economy to the tune of Rs.51 billion,” adding that the incurable regime was “hidden” behind the coronovirus epidemic.
“If no new tax is levied, how will the budget deficit be brought down from 7% to 4.4%,” he wondered, noting that the government did not let itself off the hook by playing a game of filmmakers and non-filmmakers.
Mir mentioned that other sectors should also be facilitated by the government led by Prime Minister Imran Khan to provide assistance to the construction sector.
“Should merchants close their shops and start building houses? Per capita income has fallen and shops are deserted,” he said.
‘Impractical’ – Business Analyst Mohammad Sohail
Another member of the business community, Mohammad Sohail, spoke to Geo News, describing the budget as “impractical”.
The analyst said that the most important factors that concern the common man are employment and income, which are at risk due to the current epidemic. “The budget seems quite incomplete and uncertain. “
He said that the biggest threat is the fiscal deficit, which was not addressed in the budget, adding that in case of negative shortfall, the government does not know how to overcome its shortcomings.
‘Business friendly’ – ICCI President Muhammad Ahmed
On the other hand, Islamabad Chamber of Commerce and Industry (ICCI) President Muhammad Ahmed said he welcomed the budget, describing it as “business-friendly”.
Ahmad said customs and regulatory duties were reduced and industries were relieved, leading to a reduction in the inflation rate. “The government presented a business-friendly budget,” he said.
The ICCI president also welcomed the move to relax the condition of introducing CNIC copies for the transaction – now Rs 100,000. “Now new taxes were introduced and that’s great,” he said.
The move to make concessions on imported products for children was commendable. “From the budget speech, it seems that [the government] Made a lot of concessions, ”he said.
Ahmed said, “The direction of the government’s business operations is clear. Ahmed said that the fixed tax rate can pose challenges for small businesses.”