Existing tax laws not in conformity with the SME sector: PBIF
From Our Correspondent
ISLAMABAD: President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain Yesterday said government should establish a separate fund to cater for the capital requirements of the SME sector. Many countries have ensured development by promoting SME sector but here situation is different as this sector is only getting seven percent share in all the loans issued to the private sector, he said. Speaking at a seminar titled, “SME – A Source of Socio Economic Development: Prospects and Challenges” held at Bahria University Karachi Campus, he said that existing tax laws are compatible for large industries but they are not in conformity with the SME sector. Therefore, he said, a separate independent revenue authority based on different laws is needed to boost the SME sector which covers 96 percent of all the businesses in Pakistan. Mian Zahid Hussain said that SME is a labour intensive sector which can absorb many unemployed as around two million youth is entering in the job market every year with fewer opportunities. He also called for establishing a separate fund of one trillion rupees with flexible rules for the development of this sector under the direct supervision of the central bank. He also called for establishment of IT centres in every major city to impart training regarding business development and teach application development to bright ones.