KARACHI (APP) - Federation of Pakistan Chambers of Commerce and Industry has finalized its proposals for federal budget 2010-11. This was stated by Zakaria Usman, Vice President and Chairman of FPCCI Working Group on Federal Budget (Micro Proposals) and FPCCI Strategy Panel on Federal Budget (Macro Proposals), said FPCCI statement issued here on Tuesday. The proposals were finalized FPCCI in Executive Committee Meeting (Emergent) held simultaneously at FPCCI offices in Karachi, Lahore and Islamabad via video conferencing, under Chairmanship of Sultan Ahmed Chawla, President. He disclosed, humongous debt servicing is denying prosperity and consequently leading to poverty. Therefore, theme of the proposals is Prosperous and Debt Free Pakistan. Unlike past practice, this year the pre-budget proposals have been divided into two parts Macro: consisting of long term strategic proposals and Micro: based on industry specific proposals. These were prepared by FPCCI Working Group on Federal Budget and FPCCI Strategy Panel on Federal Budget respectively constituted by President FPCCI Sultan Ahmed Chawla. FPCCI Vice President elaborated that Macro proposals have been prepared after giving due consideration to the main ailments of our economy. Due to Pakistans low productivity resulting from massive exemptions, poor administration, low threshold, and lack of transparency and enforcement, the government faces a massive challenge of balancing low revenues. It has also identified core economic issues i.e. budget deficit, trade deficit, resource allocation, ever increasing expenditures, poor governance. These proposals and recommendations have been prepared with a view to bring about tax reforms including suggestions to simplify the law and remove ambiguities in tax regulations, broaden the tax base and take effective measures for tax evasion with a view to make Pakistan prosperous and debt free. Similarly, he said, Micro proposals which have been prepared after giving due consideration to the suggestions received from our member trade bodies (Chambers of Commerce, and Associations of Trade and Industry) on harsh and irritant provisions of taxation law are divided into direct taxes; sales tax, special excise duty and federal excise duty; customs and miscellaneous. It is proposed that customs duty on a product (primary raw material, secondary raw material, intermediate, semi-finished or finished goods) may be levied on the basis of Tariff Structure (5pc to 25pc). However, during this process a customs anomaly may be crept in. Therefore, it is also proposed that a FBR Pre-Budget Customs Anomaly Committee consisting of FPCCI representatives may be constituted to remove the anomalies, well in time and avoid post budget confusion. He disclosed that FPCCI believes that taxation should be imposed on the basis of fairness and equity on all sectors of the economy. Accordingly, the proposals have been primarily focused towards achieving these objectives through promotion of public-private partnership for speedy revival of economy, levy of tax indiscriminately wherever the income is generated should be taxed to broaden the tax base and to make six monthly income and expenditure reports public, to keep transparency, undertaking austerity measures to spend more money on development works. It has also proposed to postpone the enforcement of VAT for 2-3 years and in the meantime the FBR should complete its home work by removing distortions from the economy, bringing all the sectors and taxpayers (whole sellers, retailers etc) in the tax net, curtailing smuggling, curbing parallel economy etc., and take all the stakeholders in confidence and make it business friendly.