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Dry port, SIZ, tax-free

machinery feature

AJKCCI budget proposals

RECORDER REPORT

MIRPUR: Azad Jammu and Kashmir Chamber of Commerce and Industry (AJKCCI) has reiterated the long-standing demand of AJK traders to establish a much-needed dry port at Mirpur (Azad Kashmir) to boost the industrialisation process and exports of the region.

While forwarding proposals for the next year's budget, the President of AJKCCI, Zulfiqar Abbasi, has also expressed the need for setting up 'Kashmir Bank' just as Bolan Bank, Bank of Punjab and Bank of Khyber have been allowed to be established.

Similarly, it has been suggested that sincere and effective steps should be taken to boost tourism in the area and develop hydropower generating facilities to provide cheap electricity to people of the area.

The AJKCCI chief said that the increase in withholding tax to 4 percent in last year's budget had made exports incompetitive and opened the way for smuggling of imported items. As such, he said, the rate of withholding tax should be reduced to 2 percent and its net should be widened to include the agricultural sector.

It has been suggested that the exemption ceiling of income should be raised to Rs one lakh (Rs 1,00,000) for individuals and the income tax should be charged on a slab system.

The AJK Chamber has suggested that plant and machinery imports should be allowed at a maximum of 10 percent duty, but for underdeveloped areas like Balochistan, interior Sindh, NWFP and Azad Kashmir, it should be duty-free.

It has been said that the withdrawal of incentives for special industrial zones (SIZs) has caused a set-back to the industry and these should be restored. Alternatively, the SIZs should be converted into export processing zones (EPZs).

It has been proposed that the rate of general sales tax (GST) should be reduced from 15 percent to 5 percent.