KARACHI: Speakers at a seminar on Tuesday stressed the need for reduction in sales tax rates, which will further increase inflation in the country. These views were expressed at a 'Post-Budget Seminar 2008-09' organised by the Karachi Sales Tax Bar Association (KSTBA) here at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

KSTBA President Khushnood A Khan, FPCCI Chairman M Zakariya Usman, FPCCI vice president Zubair F Tufail and KSTBA General Secretary Shaikh Jalaluddin spoke on the occasion.

The speakers termed Budget 2008-09 as agro-based budget but not very supportive to industrial sector. Government has paid special attention to facilitate the agriculture sector in the budget, which will play a vital role in stabilising the country's economy but industrial sector should also have been facilitated, they said.

They urged all stakeholders to undertake collective efforts in order to achieve sustainable development. They opined that the recent one percent increase in sales tax rate would create hurdles in industrial growth adding that the ultimate sufferers of the decision would be the low income group.

Expressing views on various tax exemptions and concessions, the speakers said that these would result in the reduction of cost of production thus making products more competitive in international markets.

They cited that increase in taxes on the import of raw materials meant for manufacturing purpose and bringing them at par with the commercial importers of the raw materials is not justified. This would further increase the cost of Pakistani products, which would become uncompetitive in the regional and international markets. A large number of people belonging to every walk of life also attended the seminar.