SMEs DISAPPOINTED WITH TAILORED BUDGET
The Union of Small and Medium Enterprises (UNISAME) expressed disappointment with the fiscal budget 2025-26.
President UNISAME Zulfikar Thaver said it was indeed very disappointing to note the imposition of 18% Sales Tax (ST) on Solar Panels. The SME units to make energy affordable were installing solar systems and instead of encouraging them to make their own electricity, the government has levied ST to make it unaffordable. Secondly the income tax on profit on bank deposits/savings is increased to 20% from 15% this is going to discourage savings, one fails to understand the rationale behind such policies which are also unfriendly and without logic. Thirdly the removal of exemption on eCommerce, free lancers and online small businesses is a very narrow minded approach to treat new comers, beginners and self employed youth who are not getting jobs due to unemployment as big industrialist are shy and industrialization is not taking place.
Thaver said the government made us believe that it was making reforms and the sector was looking forward to reforms which would promote, support, facilitate, encourage and give incentives to motivate the under privileged sector but unfortunately the government has punctured the hopes of the sector.
The Union chief has time and again invited the attention of the policy makers to the fact that SME promotion and development is no charity it is the right of the SMEs on the state and the responsibility of the government to give priority to the majority sector which well deserves their best attention by virtue of its contribution to the economy in terms of employment, exports, GDP, poverty alleviation, value addition and supply chain formations.
Thaver said better late than never the prime minister Shehbaz Sharif must hold a meeting with his special assistant Haroon Akhtar, SMEDA CEO, and UNISAME Council to understand the requirements of the sector for marketing which would increase exports, technical support for best productivity and higher yield, also to modernize and fill the technological gap.
The UNISAME Council has invited the attention of the PM to the fact that there is an urgent need to sharpen the tools to uplift the sector and any lethargy in this would be unforgivable
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