The Overseas Investors Chamber of Commerce and Industry (OICCI) has made a fervent appeal to the Sindh government, imploring for the withdrawal of the Infrastructure Cess to alleviate the burden on the cost of doing business.
In its recommendations for the provincial budget 2020/2021, the OICCI emphasized the long-standing plea from businesses operating in Sindh to eliminate the Sindh Development and Maintenance Infrastructure Fee/Cess on all imports. This levy, introduced through the Sindh Finance Act of 1994 and subjected to amendments over time, has posed significant challenges to businesses, both in terms of costs and impediments in ease of operations.
The OICCI underscored the detrimental impact of this levy, which has been a subject of litigation for numerous years. The chamber proposed the complete withdrawal of the Sindh Development and Maintenance Infrastructure Cess, emphasizing its adverse effects on the overall business landscape.
With seventy percent of its membership rooted in Sindh, the OICCI reiterated its persistent recommendations for the removal of this levy, citing its detrimental effects on the cost structures of businesses within the province. Eliminating this cess, the chamber argued, would alleviate the unnecessary burden on importers navigating through Sindh, thus fostering a more conducive environment for business growth.
Amidst the ongoing crisis triggered by the COVID-19 pandemic, businesses are grappling with unprecedented challenges, including liquidity constraints and profitability issues. Against this backdrop, the OICCI sees an opportune moment for the Sindh Government to act decisively and eliminate this contentious levy.
“The current COVID-19 related crisis impacting businesses and creating liquidity and profitability issues is perhaps the right time for the Sindh Government to eliminate this disputed levy and help the businesses in their struggle to continue business operations and pay their monthly wage bills,” remarked a spokesperson for the OICCI.
The chamber’s appeal resonates with businesses across various sectors, which have long lamented the burden imposed by the Infrastructure Cess. As businesses strive to navigate through turbulent economic conditions exacerbated by the pandemic, relief measures such as the withdrawal of this levy could significantly alleviate their financial strains.
Furthermore, the elimination of the Infrastructure Cess aligns with broader objectives of promoting ease of doing business and attracting investments to the province. By reducing the cost burdens on businesses, the Sindh Government can foster a more conducive environment for economic growth and job creation, ultimately contributing to the prosperity of the region.
The OICCI’s proposal comes at a critical juncture, where concerted efforts are needed to revive economic activity and support struggling businesses. As stakeholders await the upcoming provincial budget, all eyes are on the Sindh Government’s response to this pressing issue.
In conclusion, the OICCI’s call to withdraw the Infrastructure Cess underscores the imperative for proactive measures to bolster the business environment in Sindh. As stakeholders engage in dialogue and deliberations, the decision to heed this appeal could mark a significant step towards fostering a more resilient and vibrant economic landscape in the province.