KARACHI: SITE Association of Industry (SAI) has submitted comprehensive set of proposals for 2024-25 budget aimed at promoting industrialisation and sustainable economic growth in country.

SAI has proposed to government an increase in tax-to-GDP ratio by bringing untaxed and undertaxed sectors of economy into tax net. Industrial sector, contributing 20-22 percent to GDP and shouldering over 50 percent of national tax burden, is crucial pillar of economy. President of SAI Kamran Arbi emphasised importance of not overburdening this sector, warning government against "Killing goose that lays golden eggs." Arbi highlighted need to expand tax base by bringing untaxed and undertaxed sectors into fold, rather than further taxing already heavily burdened industrial sector. SAI's budget proposals were submitted to key government officials including Prime Minister, Finance Minister, Governor of State Bank of Pakistan Chairman of Federal Board of Revenue.

Proposals outline eight key recommendations spanning fiscal, monetary, trade and energy policies include-substantial reduction in direct and indirect taxation measures on industries, reduction in corporate taxation, dividends and taxes on salaried persons, removal of unnecessary restrictions on import of industrial inputs, implementation of single cascaded rate of import tariffs on industrial inputs and removal of additional and regulatory duties. Provision of predictable forex regime with 12-month forex cover for imports and exports and revision of energy policies to reduce electricity and gas tariffs for industries. 

Additionally, progressive reduction of policy rates to stimulate industrial and economic growth, and lowering of lending rates for industrial projects and exports to single digit are proposed.