The Muttahida Qaumi Movement (MQM) joined hands with the Karachi Chamber of Commerce & Industry (KCCI) on Tuesday to reject the proposed 2010/11 budget, calling it anti-people and anti-industry.

MQM lawmaker Rasheed Godial, who is a member of the National Assembly Committee on Finance, said his party, despite being part of the coalition government, rejects the tax-laden budget.

He was addressing a post-budget press conference at KCCI where top business leaders were also present. KCCI President Abdul Majid Haji Muhammad asked Godial to arrange a meeting with Finance Minister Dr. Abdul Hafeez Sheikh so that Chamber could request him for the removal of a number of tax anomalies in the proposed budget.

"We did not let the Value Added Tax (VAT) pass from the committee," Godial said. The committee had handed over a 27-point agenda to Dr. Sheikh 12 days before the presentation of budget.

The demands included, remove regulatory duty on various items, reduce turnover tax, and not to implement VAT."There are tens of thousand shops from Quetta to Karachi and I have proposed to charge a meagre amount from them instead of implementing VAT," Godial said.

The collection of this nominal amount from shops would be much higher than the estimated earning of Rs70 billion from VAT, he said. "But authorities did not listen to us as the proposed system would end the ways to corruption to tax collectors."

"If government leaves its Rs22 per litre profit on petrol, the issues in the business and economy may be resolved at a quick pace." He also criticized his ruling partner for imposing tax on zero rated five industries, which last year gave addition revenue of Rs21 billion after being declared zero rated industries.

The imposition of tax on these industries would lower their production, he said. Former president KCCI Anjum Nisar criticised the government for increasing rate of Withholding Tax (WHT), General Sales Tax (GST), turnover tax on distribution, continuation of regulatory duty, imposition of 0.3 per cent tax on banking transactions, and increase in electricity tariff by the Karachi Electric Supply Company in the name of fuel adjustment charges.

KCCI members representing different sectors including edible oil, tea, and textiles said increase in various taxes would increase the cost of doing business and the ultimate victim would be the people.