KARACHI: Korangi Association of Trade and Industry (KATI) expressed displeasure over promulgation of Presidential Ordinance to imposed new taxes.
KATI President Salman Aslam in a statement issued on Thursday expressed reservations over the imposition of new taxes worth Rs38 billion through a Presidential Ordinance.
Besides, he said instead of keeping the interest rate at 15 per cent, it should have been reduced considering the current situation, which would have stabilized the economy.
Salman Aslam, while reacting to the announcement of a further increase in income and sales tax on electricity bills and super tax said that the government has issued this ordinance to get additional revenue of Rs80 billion from the International Monetary Fund (IMF).
Due to this, the difficulties of the industry will increase enormously and it will be impossible to continue the industrial production process because the cost of production and electricity prices are already at the highest level in history and a further increase in them will bring the industries to the brink of collapse.
KATI chief said that along with the announcement of the agricultural policy, the Prime Minister should also announce the industrial and economic policy on the long-standing demand of the business community and industrialists so that investment in the country is promoted and the economy moves towards improvement.
Aslam said that the government is lifting the ban on imports of luxury and non-essential goods following the demand of the IMF, which will lead to the import of luxury goods despite the additional duty and outflow of valuable foreign exchange. He said that the ban on imports should have been maintained by the government.
Salman Aslam welcomed the government’s reduction in duty and import of raw materials, machinery, and other essential items.
He said that instead of imposing more taxes to collect additional revenue, the government should consult with the industrialists, and if taxes are reduced including the cost of production, tariffs of electricity and gas reduced, then the business will be faster in the country, the industrial wheel will start moving, which will help the government. The required tax target will also be achieved.
KATI President demanded the government not to increase super tax and tax on electricity bills, otherwise, industries in the country will be closed, unemployment will spread rapidly and the economic crisis will intensify due to lack of investment.
