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MCCI demands separate cotton bureau

RECORDER REPORT

MULTAN: Multan Chamber of Commerce and Industry's acting Chief Majid Fakhri has demanded for establishing a separate cotton bureau like jute ministry in Bangladesh to resolve the problems of cotton economy, as 65 percent of national economy from sowing to marketing and exports relies on it.

In his address of welcome to Chief Executive Gen. Pervez Musharraf at Multan Circuit House on Saturday MCCI chief said that an economic advisory board be formed and due representation be given to the southern Punjab and Multan chamber in it.

Majid Fakhri demanded for immediate construction of a new bridge on the river Chenab near Mohammadwala as the existing bridge of Shershah had completed its life and now it was in a very dangerous condition.

Submitting his suggestion for industrial growth, MCCI chief said that bank mark-up rate on industrial loans and working capital parity be brought at par with the rest of the world.

The utility charges for industry be reduced for industrial growth. Solid steps be taken to revive the closed and sick industrial units. He suggested that defaulted loans be rescheduled on a very realistic basis besides announcing an incentive for them.

He further suggested that in order to make out exportable goods more competitive, all imported inputs used by export-oriented industry be exempted of payment of all local levies and Taxes besides streamlining and simplifying the export refinance Part-XI scheme.

MCCI chief said that an export development bank be established in Pakistan to help in boosting up exports and to provide specialised services to the exporters. He said that all anomalies in existing taxation system be removed and discretionary powers of the assessing officer be completely abolished to eliminate the corruption and irregularities, withholding tax against supply and import be rationalised particularly for industries using imported raw material for their products. At present 3.5 percent tax is levied on supplies and 5 percent tax is levied on imports.

Fakhri said that judgement of Supreme Court be implemented in letter and spirit, such taxes paid under section 80-D by the exempt unit be ordered to be refunded. He said that a huge amount of refunds on account of income tax, sales tax and custom duty are payable by the government to the industries and businessmen, it should be repaid immediately.

He demanded for reducing the sales tax rate to 10 percent besides abolishing the wealth tax which is being charged on business capital, stocks and shares etc.

All banks be privatised forthwith to avoid further large scale defaults and corruption. Banks should be encouraged to formulate long-term financing policies to stimulate the ailing economy and industrial setup.

MCCI chief further said that Multan airport be upgraded so that wide bodied aircrafts could operate from here.

Chief Executive Gen. Pervez Musharraf listened to him patiently and assured meeting their demands. He said that he would check these demands minutely in the presence of other experts. He assured that at least 50 percent demands would surely be met.