The business community has appreciated the federal budget 2008-09 and termed it as pro-agriculture and pro-manufacturers. However, it asked the government that all the raw materials, not being produced locally, should be declared duty free for at least one year to help reduce input cost and enhance the country's exports. The government's revenue, in case if it declares the import of raw materials at zero rate, will not be declined because the prices of raw materials in the international markets have already increased by three-four times. The government, therefore, must review the levy of import duty on the raw materials which are not being manufactured locally, said the Lahore Chamber of Commerce and Industry's President Muhammad Ali Mian, in his post-budget press conference here Wednesday. The LCCI former presidents, executive committee members and large number of businessmen, who shared their views on the budget, were also present on the occasion. The steps including revision of wheat support price in near future, enhancement in the subsidy on DAP fertiliser, augmentation of loans for agriculture sector, and incentives to promote mechanised farming are good steps to develop the agriculture sector. The revenue collection target of Rs 1250 billion, set for the year 2008-09, has no clarity and did not explain how it would be achieved, he maintained. Mian said the government should have announced special initiatives to reduce the cost of doing business. As far as the measures to reduce the gap between demand for and supply of electricity and gas are concerned, are supportive to the industry as well agriculture. He also expressed his concern over the high mark-up rate and said the industry needs immediate relief in this regard. He urged the government to reduce mark-up rate to a single digit through the Finance Bill 2008-09. He said the condition of 35 percent L/C margin is creating liquidity crunch for the businessmen and needs to be reviewed by the State Bank of Pakistan. He appreciated the levy of 20 percent duty on the import of sewing machines and related parts and said it would help protect the local industry, which was about to collapse in the absence of import duty during last budget. As far as the levy of Rs 500 import duty on mobile phone set is concerned, the LCCI President termed it irrational and said it would push up the cost of low price phone sets. There is a great difference in the prices of mobile phone sets, thus the levy should be imposed according to the price, he said. The businessmen also commended the budget-cut in the Prime Minister House, National Assembly, Senate and freezing of expenditures in the government departments other than salaries and said it gave a good message about the present government's intention, he added. He also termed the opening of defence budget for debate in the parliament, and launching of Benazir Bhutto Support Programme (BBSP) as good steps. The BBSP will help provide minimum support to the poor class, he added. The taxation on real estate was a long-demanded proposal because this major area was missing in the tax net which now would help enhance government's revenue. The incentives to promote CNG buses by reducing duty and exempting from sales tax would not only help improve environmental condition but would also help reduce oil import bill, he added. Though, the government has announced construction of one-million housing units for the low income group, yet the increase in excise duty on the cement from Rs 750 to Rs 1000 per metric ton could leave negative impact on the construction industry, the LCCI President opined. He termed the improvement in the law and order situation and political stability a must for the achievement of budget objectives. He also demanded of the government to set up business courts to exclusively deal with the business matters so that speedy justice could be ensured. The LCCI former President Anjum Nisar had different point of view who termed the budget as traditional and said no significant steps has been taken to promote the industry. Moreover, the uniformity in the With-holding Tax slab for the commercial importer and industrial importer at two percent would accelerate imports and thus against the industry. While expressing his concern over the increasing trade deficit, he said it could touch $19-20 billion and the government should have given priority to improve the balance of payment. Copyright Business Recorder, 2008