Budgetary measures draw mixed reaction from trade and industry

M Abdul Aleem
Secretary General OICCI

Overall the budgetary measures seem to have been delicately crafted under a prevailing uncertain environment. From the Overseas Investors Chambers of Commerce and Industry (OICCI) perspective, we are disappointed with the staggering 3-4 per cent super tax which should have been withdrawn in totality. Similarly reduction in corporate tax rate in installment by 1pc for next five years is a positive but below expectation and regional average.

The finance minister has also disappointed many by not giving a way forward in settling the long pending tax refunds of the corporate sector.

“Disappointed that long pending tax refunds of the corporate sector have still not been settled”

However, the withdrawal of tax on bonus shares, lowering of tax rate and limit on undistributed profit are appreciated. Lowering of tax rate and limited on undistributed profit are appreciated as is the extension of tax incentive on BMR investment up to 2021 and 20-year tax holiday on deep conversion oil refinery.

Data mining promised by the finance minister of finance to broaden tax base has been long overdue and will be watched by all the stakeholders intensely.

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© 2012 Overseas Investors Chambers of Commerce and Industry
The Overseas Investors Chamber of Commerce & Industry (OICCI) serves as the national point of reference for foreign investors in Pakistan. Established in 1860 as the Karachi Chamber of Commerce, it is the oldest of the existing chambers.