Karachi industrialists ‘disappointed’ after meeting PM Khan

[Kabira]

A number of traders and industrialists from Karachi called on Prime Minister Imran Khan during his visit to the metropolis on Wednesday, but they said the meeting was “disappointing”.


Khan arrived in Karachi Wednesday afternoon on an official trip, where he was to meet trade representatives, review the law and order and progress on the development packages for the city. He is scheduled to depart for Islamabad the same night.

The industrialists apprised the prime minister of their problems at the meeting. They said that Khan listened to them patiently but no decision was made on resolution of their issues.

“The meeting remained futile as a consensus could not be achieved on anything,” they said.

The prime minister, instead of resolving issues of traders, kept talking about accountability at the meeting. “No one will be spared and the past rulers will be subjected to strict accountability,” he said.

Adviser to PM on Finance Hafeez Sheikh and FBR Chairman Shabbar Zaidi responded to the industrialists’ queries.

The delegates from trade bodies gave suggestions for reforms in tax system, increasing investment and employment, prevention of smuggling and bringing down inflation.

The prime minister told them the government wanted to facilitate them. “The purpose of my visit is to resolve your issues, but the economy of Pakistan cannot be run in old way.”

He urged the business community to partner with the government, saying that expediting the economic process and alleviating poverty were top priorities of his government.

During the meeting, the traders demanded the government remove condition of providing CNICs for the purchase of goods worth over Rs50,000.

The prime minister said the government wanted to take along traders and industrialists, but turned down their “unjust” demand of not presenting CNICs for the purchase of goods.

“We want Pakistan to progress like Turkey,” the prime minister added.



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[nahtanbob]

A number of traders and industrialists from Karachi called on Prime Minister Imran Khan during his visit to the metropolis on Wednesday, but they said the meeting was “disappointing”.


Khan arrived in Karachi Wednesday afternoon on an official trip, where he was to meet trade representatives, review the law and order and progress on the development packages for the city. He is scheduled to depart for Islamabad the same night.

The industrialists apprised the prime minister of their problems at the meeting. They said that Khan listened to them patiently but no decision was made on resolution of their issues.

“The meeting remained futile as a consensus could not be achieved on anything,” they said.

The prime minister, instead of resolving issues of traders, kept talking about accountability at the meeting. “No one will be spared and the past rulers will be subjected to strict accountability,” he said.

Adviser to PM on Finance Hafeez Sheikh and FBR Chairman Shabbar Zaidi responded to the industrialists’ queries.

The delegates from trade bodies gave suggestions for reforms in tax system, increasing investment and employment, prevention of smuggling and bringing down inflation.

The prime minister told them the government wanted to facilitate them. “The purpose of my visit is to resolve your issues, but the economy of Pakistan cannot be run in old way.”

He urged the business community to partner with the government, saying that expediting the economic process and alleviating poverty were top priorities of his government.

During the meeting, the traders demanded the government remove condition of providing CNICs for the purchase of goods worth over Rs50,000.

The prime minister said the government wanted to take along traders and industrialists, but turned down their “unjust” demand of not presenting CNICs for the purchase of goods.

“We want Pakistan to progress like Turkey,” the prime minister added.



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do corporations or business entities have a CNIC ? ( Computerized National Identity Card)

 

[Syed1.]

Ask yourself why the traders all of a sudden have an issue with providing CNIC for purchases off over Rs. 50,000.


Therein lies the crux of the problem. They want to protest, let them protest. They get back to their sense since they will have to provide for their families.

 

[mudas777]

What's wrong with presenting CNIC's ?? How it stops investment, jobs or trade, can some one enlighten me please?

 

[H!TchHiker]

Ask yourself why the traders all of a sudden have an issue with providing CNIC for purchases off over Rs. 50,000.


Therein lies the crux of the problem. They want to protest, let them protest. They get back to their sense since they will have to provide for their families.

Exactly..what is the problem they have with CNIC ? if i go to purchase and they ask for CNIC i don't have problem..Why they are creating so much noise on CNIC demand...How come CNIC is linked to inflation and investment

 

[zulu]

@ps3linux @Reddington
on one breath they crying Tax inspector harassed them when try to convert things to automation so there would be no need of inspection personally by inspector and asking for CNIC is first step towards it they start again crying its will destroy business .chaty kiya hain yeh ???short version if CNIC is putting on every sale and that data not match as presented by buyer(which is ordinary citizen always paying all kind of direct/indirect taxes) he bought something from that shop and that not going to show in shops/business record bus yeh issue hai for them.i over simplified it undocumented economy is also heavily rely on parallel/black economy so its going to be double shock for them

 

[Kabira]

What's wrong with presenting CNIC's ?? How it stops investment, jobs or trade, can some one enlighten me please?

Retail sector is booming in Pakistan along with real state because both enjoyed tax free holidays for decades now.

1. Hardly any tax on retail who sell everything under the sun including smuggled products. This punish local industrialists.

2. No one ask from where the money came from to buy properties in Islamabad, Karachi and Lahore. Industrialists in last 10 years have put their money in retail and real state business.

Obviously this doesn't mean everyone is buying properties with black money but fact is if black money is taken out then properties prices will be much lower. That would help normal people to own house instead of speculators.

 

[zulu]

One fun story.After taking charge Dr Abdul Hafeez Sheikh attend business community gathering as usual they start putting demand which they always do we need subsidies on this and that,need this electricity gas and all sounds reasonable???DR simply listen than put figures in front of them u were taking all these for last 5 years with promise going to increase export and in last 5 years u did not increase it even by just one percent .Scene thaa aisy munh latky thy batana mushkil Later he got instruction from govt ""bhi hath hola rakh"""

 

[valkyr_96]

do corporations or business entities have a CNIC ? ( Computerized National Identity Card)

What kind of a nonsensical question is that? The issue here is with traders (wholesalers and retailers). These are unregistered "businesses" which are not in the tax net. The article makes a distinction for industrialists which form corporations and business entities, which are registered and hence have already provided their CNICs.

 

[313ghazi]

do corporations or business entities have a CNIC ? ( Computerized National Identity Card)

Really good question. The answer is no. I wonder what the requirements is for B2B transactions - if any.

 

[nahtanbob]

What kind of a nonsensical question is that? The issue here is with traders (wholesalers and retailers). These are unregistered "businesses" which are not in the tax net. The article makes a distinction for industrialists which form corporations and business entities, which are registered and hence have already provided their CNICs.

every trader (registered or unregistered) should form a business entity. call it what you want

 

[AsifIjaz]

Decades old habit of underinvoicing, non documented transactions and non receipt deals will take a while to do away with.
The traders and dealers need to see an iron resolve for them to change their minds and bad habits. Their agitation and discontent will increase before the message gets through. Buckle up every one.

 

[valkyr_96]

every trader (registered or unregistered) should form a business entity. call it what you want

That is not how it works because what classifies as an expense for a business entity or an individual for tax purposes differs.
Moreover you have failed to understand the point here. Wherever a cash transaction takes place at least there is a CNIC to track whatever amount is being purchased and by whom so these people do not get away with under-invoicing.

 

[nahtanbob]

That is not how it works because what classifies as an expense for a business entity or an individual for tax purposes differs.

i understand that. how do you know whether someone is an individual or a business entity ? the easiest solution is to force the creation of business entity

 

[valkyr_96]

i understand that. how do you know whether someone is an individual or a business entity ? the easiest solution is to force the creation of business entity

All business entities are registered they can be be private, public(listed or non listed). Banks will not deal with small traders and at best they will get financing from micro-finance banks so in order to get bank financing LCs, individuals are forced to become registered entities. Weaker reporting will result in smaller size loans and high interest rates. The financial system and its law places enough restrictions for companies to register and have audited account by established auditing firms(there are three categories of acceptable accounting firms issued by the SBP). Again the issue here is to capture cash transactions and under-invoicing. The government can issue business license (there were talks on this) which will result in another quagmire. So far the attempt is to fix the holes in a leaky ship anything more will require more legislative power and time.