Says govt, FBR should change their attitude toward traders & adopt congenial, business friendly policies
LAHORE: In order to make the county’s fragile and delicate economy stable and strong, the businessmen and investors must be respected, trusted and given level playing field to operate, said Abdul Basit, the president of Lahore Chamber of Commerce and Industry (LCCI), the other day.
In an exclusive interview with Customs Today, he said that Kalabagh Dam, which was crucial for country’s economy, has been politicized and delay in its construction has cost the nation $288 billion.
“Pakistan has the potential to feed half of the world but due to lack of political will, incompetence, negligence, and difficulties in doing business it has to import even tomatoes, onions and potatoes from other countries,” he said.
“Our exports have dropped to $20 billion from $25 billion which is very strange fact and needs to be investigated as to why the decline took place and what were the reasons behind it despite the fact that a huge potential existed. “It will not be wrong to say that anti-business policies of the government and the Federal Board of Revenue (FBR) are responsible for most of the country’s economic woes …” the LCCI president said.
The FBR has neither taken it seriously to payback refunds to the traders and industrialists nor it paid back any markup on the stuck up funds which were considered additional cost and lead to the acute shortage of working capital for the industry, he said. He explained that the industry has to take bank loans to meet the shortage of funds which they have to payback with interest and markup. If they do not avail the capital from banks they will have to close down their businesses, he said.
Secondly, he said that it has become one of the biggest hurdle in the way of growth and development of industry when the FBR often recovers taxes by attaching the businessmen’s accounts under section 38 and 40b.
“The government can recover its taxes by attaching individuals and companies’ accounts but the trade and industry is deprived of its long stuck up refunds and rebates with the government and the FBR,” he said.
“The government functionaries attaching companies accounts recover their amounts, impound the companies records, computers and then publish and telecast in the print and electronic media, damaging the hard earned goodwill of any business concern,” he said, adding that the very tactics on the part of the government and FBR have played havoc with the trade and industry,” the LCCI president said.
To a question he said, “I am not advocating for the tax evaders, as tax evaders must be brought to book, however, it is damaging act when a hype is created by publishing and telecasting the tax evaders as the international market is very sensitive and always influenced by the news reports.”
Abdul Basit added: “The US, UK and other such countries are our trading partners and in the results of the media hype they stop trading with us suspecting us tax evaders in this situation a fall in exports is certain.”
“The government and FBR should change it attitude towards the business concerns extending them the due facilitations. It is true that the FBR needs revenue to run the country and if there would be no business activity there would be no revenue collection.
Due to the inappropriate attitude of the FBR with the business major investors have shifted their capital to the other parts of the world,” the LCCI president said quoting example of the move which led Pakistan investors to have invested $4 billion in flats in Dubai.
“We have to respect the businessmen, investors and producers and if we do not leave the habit to dishonor the businessmen and investors by calling the tax evaders and cartels the business activities would further suffer inflicting huge and irreparable losses to the economy,” Abdul Basit apprehended.
In answer to a question, the LCCI president said that throughout his tenure as president of LCCI he vehemently advocated the implementation of ease of doing business and level playing field for the investors and businessmen.
“If the business community flourish the economy will be boost ultimately create employment as no government single handedly can employ whole of its population, he said, demanding that investors and business community must be honored.
“Mostly businessmen start their businesses for the want of money but a time come when money does not matters they expects respect from public and private sectors but they are not raided and harassed, and finally leave the country owing to the intense and anti-business atmosphere.
“In order to revive the exports and economy we must have to tactfully take up the things, he said, adding “the government should not go to impose duties to increase revenue instead they should give rebates to make the products compatible increasing export and earning important forex reserves,
Investors all over the world are respected but in Pakistan they are called with the names of tax evaders and cartels and in such conditions how trade and industry can boost, he questioned.
“In a country where creating wealth become a crime no Tata, Birla and Bill Gates can born there,” he said.
In Pakistan every governmental functionary has the right to seize your business and never any department visited your outlet to guide you. On the other hand they never questioned to the small outlets on the bank of drainage and playing havoc with the health of the citizens because they cannot grease their palm, he pointed out.”.
Talking about Kalbagh Dam, he said one million acre feet water can yield a wealth of $2 billion every year if it is stored but we make it a waste to 35 million acre feet millions water every year which if utilized properly can earn $70 billion every year. The same amount of $70 billion may be used to pay off our whole debts.
Kalabagh dam was destined to complete in 1993 and it had to store 6 million acre feet water which would have earned $12 billion every year and in these 24 years we would have earned $288billion from a single project but it was politicized,” the LCCI president explained.
“We need to nurture agriculture sector to boost industrial growth. We have the potential to feed half of the world but due to our negligence, lack of political will, incompetence and we have to import even tomatoes, onion and potatoes like agricultural produce,” he concluded.