KARACHI - The Union of Small and Medium Enterprises (Unisame) has submitted proposals for the budget 2013-14 and urged the Small and Medium Enterprises Development Authority (Smeda) to incorporate proposals in their submissions to the Ministry of Finance.

President Unisame Zulfikar Thaver in a message to the policy and planning division stated that the SMEs are engaged in trading, manufacturing, services and farming and each is playing an important role and the government needs to realise that they all need to be facilitated and supported with finance at affordable mark up, technical education, information and comfortable environment and budget needs to ensure proper allocation of funds for this purpose.

The commercial importers and exporters are to be treated at par with the manufacturers and the facilities of utilising bonded warehouses, sales tax refund and other facilities of releasing goods on guarantees which are provided to the manufacturing units must also be provided to the commercial traders. Likewise the services sector and farming must be encouraged.

Unisame has proposed priority for the SME sector as a whole on the basis that it is the majority sector and the backbone of the economy, it is the back forte of the large sector and both are very important to one another. In fact it also proposed priority for housing being positive it will give boost to the economy. The plea is that the sector be given the priority it deserves in the budget and since Smeda is instrument it has to be enabled to implement the plan.

It is suggest that the income tax exemption limit be enhanced to Rs 600,000 in view of the depreciation of the rupee and the inflation rate due to which the buying power of the sector has become less.

It is proposed that farm inputs be spared from import duties, sales tax and other levies and instead income from agriculture be made taxable because income tax is payable on income whereas duties and taxes on farm inputs increases cost of production. Due to sales tax on farm inputs the export of value added goods is becoming uncompetitive.