ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said the recently amended finance bill will reduce the cost of doing business which in turn, will reduce the prices of many items.
The move will support businesses and help exporters regain ground in the international market as the government has reduced and abolished several taxes to lift economic activities, it said.
The government will lose almost seven billion rupees in revenue but it will gain more in the shape of foreign exchange, said PEW President Dr. Murtaza Mughal.
He said the recommendations will be applicable from the next fiscal term but it has already elevated business sentiments as many leading business groups are planning to boost investments.
Murtaza Mughal said that the proposed moves will reduce complaints about refunds, decrease blackmailing by tax officials, while all the sectors using gas will also benefit from it.
The sectors which will get a boost include agriculture, solar energy, banking, housing, SMEs, and automobiles etc.
He noted that the industrial sector owes Rs400 billion to the government under the account of GIDC which has now been reduced.
If the industrial sector decides to pay the amount, the government should abolish duties on import of cellphones at it is directly linked to national development and expansion of the telecom industry, he reiterated.
He said that non-filers have been given some relaxations which will trigger economic activities. Non-filers should get more relaxations as pushing them to the wall has reduced circulation of money in the economy.
There are other ways to include non-filers into the tax net which must be exercised, he demanded.
