KARACHI - The Karachi Branch Council (KBC) under the aegis of the Institute of Cost and Management Accountants of Pakistan (ICMAP) organised a post-Budget 2012-13 seminar here at a local hotel on Tuesday.
Shahid H. Jatoi, Commissioner, Large Taxpayers Units, Karachi, who was the chief guest on the occasion, said budget stipulates measures towards self-reliance‚ spur growth through development program, protect vulnerable segments of society from impact of global recession through subsidies, social safety nets and huge allocation of Rs 183 billion to address power shortage challenge.
He said the government spent Rs 50 billion to import 1.2 million tons fertilizer which was provided to farmers on reduced rate resulting in not only self-sufficiency in food but also creating surplus for export.
Jatoi said tax system has been simplified. Income Tax exemption limit‚ currently Rs 350,000 is being raised to Rs 400,000 tax rates also brought down which would benefit about 1.4 million tax payers.
Speaking on the occasion, Arif Habib, Chairman of the Arif Habib Group, acknowledged budget to be the big positive for the stock market. He hoped that the much-awaited step would bring relief to nervous investors, sitting on the sidelines. “It is likely to give fillip to the market and improve turnover,” he said.
Syed Muhammad Shabbar Zaidi, Partner, A. F. Ferguson, Chartered Accountants, said FBR is now empowered to transfer the registration of any person or business of a registered person to an area of jurisdiction where the place of business or registered office or manufacturing units is located.
However, the change of jurisdiction of any business of a registered person is against the principle of single registration of taxpayers.
Ali Rahim, former President Karachi Tax Bar Association, said the government has presented a balanced budget for next year under prevailing circumstances. He said the budget would provide substantial relief to salaried persons and association of persons and added that the reduction in turnover tax from 1 per cent to 0.5 per cent was also laudable. He said the agriculture sector, which contributes 20 percent to the GDP and only one percent in revenue, should have been documented.
Rahim said the government should tax agriculture income by bringing middleman into the tax-net.
The budget comprises many popular decisions taken to get political mileage, said advisor to the Chief Minister Sindh on investment and the former KCCI President Muhammad Zubair Motiwala. “Duty on pharmaceutical raw material has been reduced from 10% to 5%,” he mentioned pointing out that the budget has included some measures to provide relief to the industrial sector.
Motiwala said that budget states a deficit of around Rs1trillion but fails to mention the strategy to bridge the gap. He further said that since going to IMF during an election year would be a very unpopular move, the government should have come up with a plan to deal with the mounting deficit.
Session Chairman, Ashfaq Yousuf Tola, Partner, Naveed Zafar Ashfaq Jafferi and Co. said the Federal Budget 2012-13 is balanced keeping in view the ongoing situation and international aid stoppage. He said the circular debt will be cleared this year. He said some funds were allocated for the subsidy to the power sector but the expenditure was more than the allocated amount.
Muhammad Hanif Ajari, Director Strategic Development Getz Pharma, said that economic growth must for survival: He said the budget targets could bring good results if they are implemented in letter and spirit. He added that so far as the document is concerned it is an efficient budget. He said that if Pakistan did not accelerate its growth our survival will become difficult.
Anis-ur-Rehman, Chairman Karachi Branch Council ICMAP, said the government had set an ambitious revenue target for FY12-13. He presented highlights of the budget and changes brought in through the Finance Bill 2012.