LAHORE - The Lahore Chamber of Commerce and Industry, in its budget proposals, has urged the government to avoid implementation of Value Added Tax (VAT) in the presence of smuggling, under invoicing and Afghan Transit Trade. In the LCCI budget proposals that has been finalized after getting feedback from various sectors, the LCCI President Zafar Iqbal Chaudhry, Senior Vice President Ijaz A Mumtaz and Vice President Faisal Iqbal sheikh suggested that there should be only one rate of Sales Tax leviable on all kinds of products and services and rate of GST should be reduced to 12%. They said that the limit of exemption of Income Tax should be enhanced from Rs.100,000 (which comes to Rs.8,333/- per month) to Rs.250,000. It was proposed that Capital Value Tax (CVT) on exchange, sale or purchase of industrial property should be removed. Pharmaceutical Industry has requested the government to change the Custom Tariff Rates of some raw material so that certain life-saving drugs could be made cheaper in Pakistan. For Technology promotion in manufacturing, proposals like provision of soft term loans and grants, R & D loans and grants at the rate of 10% and subsidy for inviting foreign delegates were made. Textile sector asked that the omitted sub sections 2, 3 & 4 from section 148 of Income Tax Ordinance 2001 through Finance Act 2007 & 2008 be restored in the Finance Act 2010. Industrial Chemicals industry pleaded that they need much more feed stock at rebated duties to manufacture Stearic Acid and other chemicals. They also proposed to maintain the existing custom duty on certain products. Poultry Sector needs to be included in policy package for Corporate Agriculture Farming. Tyres and Tubes Sector drew the attention towards the mass smuggling of goods especially under the flag of Afghan transit trade. For Agricultural Tractors, relaxation in Governmental Taxes should be provided on the import of Tyres. The Biotechnology & Genetic Engineering sector urged that government should provide special attention for the development of Plastic Scrap dealers requested that the government should decrease duty on plastic scrap (HS Code 3915.0000) form 25% to 10 % on immediate basis. Government should reduce ITP of Plastic scrap to 300 $ from the existing 400 $ to provide a level playing field to the businessmen related to this sector. The exporters and importers of Automobile Spare Parts asked the government to reduce the custom tariff rates and sales tax rates by 10% and income tax to reasonable extent. The Paint Industry is a vital industry in Pakistan. The representatives of this industrys proposals are regarding reduction of the custom duty tariff, refund of advance sales tax and export of paints especially to Afghanistan. Bicycle industry is providing employment to a large number of skilled and unskilled work forces and contributes towards development of engineering industry in the country. Tools and Hardware industry pleads to rationalize the Custom Duty Tariff for the goods not made in Pakistan. Projectors is imported legally and the rest all are through grey channel. The Housing and Planning Sector requested that the benchmark may be set up for new residential & commercial construction developers and general public awareness of follow and asked the government to set certain rules and regulations for bodies like LESCO, WAPDA etc MEETING: Former Central Chairman of Pakistan Hardware Merchant Association Sardar Usman Ghani left for United States to participate in the board meeting of International Federation of Hardware and Houseware Association being held in Los Vegas. He will represent not only Pakistan but also Asia at this International moot.