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Tag: Karachi Chamber of Commerce and Industry

  • Gas supply suspension cripples industries, halts production

    Gas supply suspension cripples industries, halts production

    KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) and its affiliated industrial town associations have shown deep distress towards non-supply of gas to industries of Karachi for the last 14 days since 11 June, 2021 with ZERO gas pressure which has crippled industries and halted production that will ultimately lead to huge losses.

    According to a statement issued, the supply of gas has been closed in the name of annual turnaround (ATA) of Kunnar Pasaki field. Previously such disruption was caused due to ATA of Gambat field. All such ATA / maintenance must be planned at least six months and intimated to all concerned promptly. If SSGC as per its claim was facing gas shortfall of 200-250 mmcfd from Kunnar-Pasakhi Deep (KPD) gas field and Engro Terminal, this shortfall could have been surmounted through RLNG for the time being but instead of doing so, they announced abrupt suspension of gas supplies to industries which was totally unacceptable as it would prove disastrous not only for the business community but also for economy and the public.

    KCCI appealed Prime Minister Imran Khan to order SSGC to refrain from suspending gas supply and also order a probe into the massive gas mismanagement as the industries in Karachi, which were already going through unbearable circumstances, cannot afford any interruption in their production activities due to suspension of gas supplies.

    Despite of the fact that the Government has accorded priority in supply of gas to export sector, the export industries of Karachi are also deprived of gas. Exporters are fearing excessive delays in export shipments and will lead to shipment by Air or cancellation of orders. Whereas, the export shipment of 40 feet container by sea to USA costs USD 8,400/- while the same shipment by air costs USD 93,000/- which is equal to the total cost of said consignment of 40 feet container. In this manner, the export industries are facing colossal financial losses and shall be bankrupted leading to permanent closure and massive layoffs. Needless to mention here that more than 40 allied industries which include general industry are also associated with export industries which provide them goods and services.

    It is pertinent to note that Karachi contributes to around 60 per cent in national exports. Due to the situation if 10 per cent export is affected it means 5 per cent decline in national export. The estimated losses caused to national exports on daily basis comes to around USD 44 million (PKR 7 billion). As per the Government’s gas priority policy five export sectors would be treated on a par with the power sector in gas supplies. In contravention to its own policy, the Government is providing gas to power company of Karachi while export sector has been deprived to gas.

    KCCI is surprised as to why SSGC has disrupted gas supply on account of Annual Turn Around of Kunnar field on working days which must have been done during Eid Holidays when there is no industrial usage of gas. KCCI fail to understand why such incidences happen repeatedly only in Karachi in every 3-4 months. Whether such attempts on part of the Government are deliberate to compel the industries of Karachi to shift abroad? Why should the export industries of Karachi may bear the brunt of the mismanagement caused due to ill-planning on part of the Ministry of Petroleum and SSGC?

    KCCI appealed to the Prime Minister of Pakistan and Federal Minister of Energy to take immediate notice of Zero Pressure of gas to industries of Karachi and intervene to resume gas as quick as possible so that the industries and export must not suffer further in the best interest of economy, exports and foreign exchange earnings.

  • KCCI welcomes appointments of appellate tribunal members

    KCCI welcomes appointments of appellate tribunal members

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Tuesday welcomed the decision to appoint members of appellate tribunals.

    Shariq Vohra, President, KCCI in a statement congratulated the Justice of Pakistan Justice Gulzar Ahmed, Prime Minister Imran Khan and Law Minister Dr. Farogh Naseem for selecting Judicial Members in the Customs Appellate Tribunal and the Appellate Tribunal Inland Revenue all over Pakistan.

    President KCCI hoped that the appointments would help expedite recovery of stuck-up revenues and will be a remedy for dealing with the menace of harassment suffered by the taxpayers.

    “The Karachi Chamber of Commerce wishes success to the new appointees in performing their national duties,” he added.

  • Karachi Chamber organizes COVID vaccination facility

    Karachi Chamber organizes COVID vaccination facility

    KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) in collaboration with Red Crescent Society organized a daylong COVID-19 Vaccination Facility on Saturday, which was attended by scores of members, general public, managing committee members and the staff.

    According to a statement issued, single dose Cansinobio vaccine recently introduced by the government for people above 30 years of age was given to visitors who appreciated numerous arrangements made at KCCI where people were being vaccinated in a pleasant and hassle-free environment.

    President KCCI Shariq Vohra, while commenting on the occasion, stated that every single citizen of not just Karachi but the whole country must get themselves vaccinated at the earliest in order to save themselves and their loved ones from the life-threatening COVID-19 pandemic.

    He also appreciated all the efforts being made by the Federal and Sindh Governments who were trying their level best to somehow contain further spread of COVID-19 pandemic but the public must also join hands and come forward to fight against the pandemic by getting themselves vaccinated as quickly as possible.

    He particularly mentioned that the efforts made Senior Vice President Saqib Goodluck, Chairman of KCCI’s Health & Education Subcommittee Jawed Siddiq Mittiwala and Advisor Ateeq ur Rehman deserve to be applauded that resulted in setting up of an ideal vaccination center for a day at KCCI. “More such initiatives have to be taken under Businessmen Group’s policy of public service to not only serve the business and industrial community but also all the citizens of Karachi without any discrimination”, he added.

  • Third party to conduct tax audits: Shaukat Tarin

    Third party to conduct tax audits: Shaukat Tarin

    KARACHI: Finance Minister Shaukat Tarin has announced that tax audits to be done by third party. Further it has been decided to launch universal self assessment scheme (USAS).

    “I want to remove harassment by FBR. Although there are good people at FBR but there are also some troublemakers. Hence, we have agreed upon Universal Tax Self-Assessment and the audits by third party only,” he added while speaking at an online meeting with BMG Leadership and KCCI Office Bearers on Thursday.

    A statement issued by the Karachi Chamber of commerce and Industry (KCCI) on Thursday quoted Shaukat Tarin that if any wrongdoing was found after the audit by third party, it will result in initiation of investigation and punitive action.

    “In this regard, we have created a section to review all the bills, number of deposits and travel history etc. of individuals and if any person is found liable to pay taxes but is a defaulter, such cases will be sent to third-party auditors to prove tax default and if proven, these defaulters will be put behind bars,” Tarin said, adding that laws will be devised to put such persons behind bars responsible for willful default.

    He stated that the government was focused on rationalizing the turnover tax in order to make some sense as it varies in numerous cases.

    The minister also agreed that when three percent penalty was being charged in case of unregistered persons, the CNIC condition should not be there. Hence, the minister directed FBR to look into this matter and stop demanding CNIC.

    “A call center will also be established at FBR in which complaints can be lodged which I will personally review on daily basis to ensure accountability at the FBR,” he added.

    In response to concerns expressed over dilapidated infrastructure of Karachi, Shaukat Tarin informed that a three years package of Rs900 billion has been allocated under PSDP for Karachi which will be finalized by the PM.

    “During discussions on this allocation at a meeting which will be presided over by the Prime Minister, I will definitely raise business community’s concerns and I will be your promoter.”

    He said that the government was trying its best to facilitate the SMEs and, in this regard, the SMEs falling under the bracket of Rs2 million will be provided ‘clean credit’ facility with no security. For this purpose, the government will be providing huge amount of funds to banks at 8 percent which will be given to SMEs at 9 percent while credit insurance will be provided by the government. “It is a matter of grave concerns that out of a total of 6 to 8 million SMEs, only 180,000 SMEs have access to credit, hence efforts will be made to extend credit facility to at least 1 million SMEs in the next two years.”

    He said that FBR will also be directed not to stop refunds of SMEs and small businesses. “We will clear all the backlog of refunds within a few months by issuing Tradeable Bonds so that the businesses could have sufficient amount of liquidity available with them and a smarter mechanism will be introduced to clear refunds within 60 to 90 days.”

    Referring to concerns expressed over Rs58 billion refunds pending under DLTL scheme, Shaukat Tarin termed it as ‘a very good point” and directed FBR expedite the refunds while DLTL should not be collected this year as the FBR already owes huge amount.

    Commenting on a suggestion to treat indenters commission as export proceeds, the Finance Minister said that it was a very good idea to consider indenters’ commission as export proceeds as it has been observed that many indenters prefer to keeping their earnings outside the country but if these earnings were treated as export proceeds, it would encourage them to bring funds to Pakistan.

    He said that reforms were being introduced at the revenue side which will ensure that no harassment takes place and there will be no double taxation. “The IMF has been pushing us to stop all exemptions and impose additional tax of Rs140 billion on existing taxpayers which I denied”, Shaukat Tarin said, “Only blatant exemptions will be dealt otherwise the rest will continue. We are broadening the tax base by making good use of technology and innovation which will neither be coercive nor regressive but will be devised in consultation with the business community.”

    Finance Minister also assured to regularly hold meetings with KCCI at least once in three months so that dialogue on an ongoing basis continues to promptly resolve business community issues while the FBR will be directed to consider and resolve all the technical issues being raised by KCCI.

    Speaking on the occasion, Chairman BMG Zubair Motiwala pointed out that despite the outbreak of COVID-19, Karachi has given 18 percent growth in exports and it overall exports stood at 58 percent therefore, the Federal Government must take Karachi’s robustness into consideration and accordingly give its due share which has unfortunately not been given so far.

    He said that although a subsidy was earmarked for Karachi’s energy needs but as per Ministry of Energy, the earmarked amount exhausts by paying for uniform tariff across the country and no amount is left to give subsidy for gas at 6.5 dollars per MMBtu to the five export-oriented sectors. The subsidy does not account for the Hydel electricity portion which is given to KE as a right of Karachi over Hydel Power. If the same is calculated at the cost of hydel electricity, then this subsidy can automatically be saved and given for the sale of gas at 6.45 per MMBtu to the five export-oriented sectors.

  • Many taxpayers fail to comply with last date for filing sales tax return

    Many taxpayers fail to comply with last date for filing sales tax return

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) on Friday urged the tax authorities to extend the last date for making sales tax payment and filing monthly return for the period of April 2021.

    The KCCI in a statement urged the Federal Board of Revenue (FBR) to extend dates of payment and submission of Sales Tax and Federal Excise Returns for the Tax Period of April 2021 to May 30, 2021 to facilitate taxpayers as many of those had failed to submit their returns before the deadline which ended on May 21, 2021.

    In a statement issued, Chairman Businessmen Group (BMG) and Former President KCCI Zubair Motiwala, while appealing the FBR to extend last date for ST and FE Returns, pointed out that the business community recently underwent prolonged holidays for eight consecutive days while arrival of containers at Karachi Port also suffered delays due to situation triggered by the colossal cargo ship that became stuck on the banks of Egypt’s Suez Canal, blocking traffic through the crucial waterway.

    “Subsequently, the exports of containers which was supposed to be made in the first week of May also delayed with a lapse of at least two weeks which is a big issue for the exporters who are also facing severe liquidity crunch because of the extraordinary situation triggered by the ongoing third wave of COVID-19 pandemic and closure for eight days”, he added.

    President KCCI Shariq Vohra, while referring to his letter sent to Chairman FBR Asim Ahmed, stated that the nominal extension of just three days for filing ST and FE Return was announced earlier by FBR but it was worthless as after observing prolonged holidays, it takes time for many businesses to get back to normalcy. Therefore, many taxpayers were unable to prepare and submit their Sales Tax and Federal Excise Returns for the Month of April 2021 within the announced limited extension of just a few days.

    He further commented that the overall situation was not favorable for trade and industry as everybody was facing severe liquidity crunch nowadays due to very limited business activities hence, the FBR should extend the date of payment and submission of ST and FE Returns up to May 30, 2021.

  • Karachi Chamber demands opening of markets amid alarming corona situation

    Karachi Chamber demands opening of markets amid alarming corona situation

    KARACHI: As the country is facing alarming situation of coronavirus in its third-wave and a strict lockdown has been imposed to prevent spread of the pandemic, the business community is demanding to allow opening of market during last two days of the Eid-ul-Fitr.

    In this connection, Karachi Chamber of Commerce and Industry (KCCI) has appealed the Sindh government to allow shopkeepers and small traders of Karachi to open up businesses during last two days before Eid from Iftar to Sehri so that they could be able to recover some of the grave losses suffered by them due to stiff curbs imposed to contain further spread of COVID-19 pandemic.

    “Keeping in view the not so bad number of COVID-19 cases in Karachi, we believe that there is some room available to allow shopkeepers in Karachi to open up their businesses at least on Wednesday and Thursday from Iftar to Sehri which would be widely welcomed not only by small traders and shopkeepers but also by a large number of Karachiites who will be able to complete their unfinished shopping for Eid festival,” said Chairman Businessmen Group & Former President KCCI Zubair Motiwala.

    Zubair Motiwala pointed out that associations of commercial markets from all over the city have been constantly exerting pressure on KCCI so that the Chamber, being the premier and actual representative of the entire business community, could play its role by convincing the Sindh government to allow businesses to keep on operating during the last two days while the representatives of these commercial markets associations have also assured to fully comply with Standard Operating Procedures (SOPs) during these days.

    “Instead of completely shutting down businesses, the government should allow them to keep on running their businesses from Iftar to Sehri during the last two days before Eid which would obviously fragment the public and discourage overcrowding as all the markets in the city will be simultaneously operational, besides ensuring social distancing all the time, which is one of the key elements required for containing further spread of coronavirus”, he added.

    Keeping in view the overall situation and grievances suffered by small traders and shopkeepers, Chairman BMG hoped that the Sindh government, which has always played the lead role in efficiently rescuing the public from time to time, would provide the desperately needed relief to local businesses this time as well by relaxing the curbs for just two days from Iftar to Sehri so that the businesses could be saved from further disaster. “Keeping in view the COVID statistics and forecasts, if the government feels that the loss of precious lives was unlikely then they should provide relief for two days”, he added.

    President KCCI Shariq Vohra stated that it is high time that the Sindh government, being the peoples’ government, has to come forward to minimize the hardships being faced by the distressed citizens and the business community of Karachi by ordering to lift restrictions on opening up businesses on Wednesday and Thursday from Iftar to Sehri. “Due to harsh curbs imposed in an extraordinary situation, uncertainty prevails and people have become hopeless hence, the Sindh government will have to take steps to deal with the situation by providing relief to Karachiites during the last two days before Eid”, he added.

    Chairman of KCCI’s Special Committee for Small Traders Majeed Memon pointed out that many shopkeepers are already going through terrible crises due to limited business activities since the outbreak of COVID-19 pandemic hence, the government must look into the possibility of providing them relief for just two days before Eid by allowing them to carry on businesses from Iftar to Sehri otherwise many businesses will not be able to survive and wipeout forever. “The situation, if not promptly responded and wisely handled, would lead to intensifying the hardships not only for business community but also for the already ailing economy, besides triggering massive unemployment and poverty which would prove more dangerous than the pandemic”, he added.

  • SBP hailed for allowing opening of banks during Eid Holidays

    SBP hailed for allowing opening of banks during Eid Holidays

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday hailed the State Bank of Pakistan (SBP) for allowing banks to open their branches during Eid holidays to facilitate general public.

    Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Shariq Vohra appreciated the central bank for paying attention to KCCI’s legitimate demand and accordingly deciding to keep those authorized branches of banks operational on May 10th and 11th who are dealing in foreign exchange & trade activities.

    “We are very grateful to the government and SBP for keeping the authorized branches operational on first two days of next week to facilitate trade & industry, particularly the exports during the extended holidays before Eid-ul-Fitr,” said Chairman BMG Zubair Motiwala.

    While welcoming Sindh government’s move to keep all businesses operational on Friday and Saturday from 6am till 6pm, Chairman BMG reiterated KCCI’s demand to allow small traders and shopkeepers to keep their businesses operational throughout the remaining few days of Ramazan ul Mubarak while the business hours have to be redefined from 12am till 12pm instead of existing 6am to 6pm. 

    President KCCI Shariq Vohra said that SBP’s move would certainly give some breathing space to the exporters by enabling them to carry out important banking transactions and dispatch shipments either on 10th or 11th May, 2021. Although the Sindh government has issued holidays notification from May 10th to 15th but this needs to be reissued under Factories Act in which holidays should be categorically mentioned from May 12th to 15th which would help in dealing with confusion amongst many circles.

    He also requested the Sindh government to allow shopkeepers to keep their businesses operational during the remaining days of Ramazan and urged the shopkeepers to ensure strict implementation of Standard Operating Procedures (SOPs) at the commercial markets.

  • Karachi Chamber rejects few-day extension for filing sales tax return

    Karachi Chamber rejects few-day extension for filing sales tax return

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Thursday rejected extension of few days for filing sales tax and federal excise returns and making payments.

    KCCI President Shariq Vohra, while referring to FBR’s Letter dated May 6, 2021, stated that the extension in dates of payment and submission of Sales Tax and Federal Excise Return for the Tax Period of April 2021 up to May 18, 2021 and May 21, 2021 respectively were not enough which have to extended to May 30, 2021 to facilitate taxpayers.

    In a letter sent to Chairman FBR Asim Ahmed, President KCCI pointed out that the nominal extension in such dates for filing Sales Tax and FED Return will create difficulties for taxpayers as it takes time to get back to routine after observing extended holidays of Eid-ul-Fitr which will be starting from 9th May 2021 to 16th May 2021.

    Hence, the business & industrial community may not be able to prepare and submit their Sales Tax and Federal Excise Return for the Month of April 2021 within the announced limited extension of just a few days.

    He opined that the overall situation was not favorable for trade and industries as everybody was facing severe liquidity crunch nowadays due to very limited business activities whereas it appears that the government has announced prolonged holidays with an intention to keep the entire population at homes so that the ongoing third spell of COVID-19 pandemic could be controlled.

    Keeping in view the overall situation, President KCCI requested FBR to extend the date of payment and submission of Sales Tax and Federal Excise Return for April 2021 up to May 30, 2021 in the larger interest of FBR and the Business Community while the relevant notification for extension may also be reissued which would be widely welcomed by the entire business and industrial community of the country.

  • Customs needs to improve performance: Karachi Chamber

    Customs needs to improve performance: Karachi Chamber

    KARACHI: The performance of Pakistan Customs is not at par with expectations of trade and industry. This mismatch between expectations and delivery should be resolved effectively, said Shari Vohra, President, Karachi Chamber of Commerce and Industry (KCCI).

    He said while exchanging views with a delegation of Senior Collectors of 31st Mid-Career Management Course from Directorate General of Training & Research (Customs) who were led by Additional Director Junaid Usman Akram during their visit to Karachi Chamber.

    The meeting was also attended by Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan and KCCI Managing Committee Members.

    Shariq Vohra was of the opinion that the Customs Department has to improve its efficiency as per international standards and must stay abreast with global changes and technological advancements as staying confined to traditional and obsolete practices for clearance of goods would never yield positive results in terms of expediting procedures for clearance of goods.

    “Although Customs Department is a tax collector but it has to be a facilitator as well,” he added.

    He was of the opinion that free dwell time of five days usually expires because of slow pace of Customs Department that causes severe losses to the business community on account of demurrage and detention charges on a daily basis which not only makes the imported goods uncompetitive in the local markets but also affects the exports.

    “At times, many consignments carrying essential raw material for export-oriented industries are also held up by Customs authorities for long which raises the cost of raw material and eventually increases the cost of exportable goods.

    “This is a very serious issue which requires special attention as it makes many Pakistani products uncompetitive in the international markets,” he explained.

    Additional Director Directorate General of Training & Research Junaid Usman Akram, while appreciating KCCI for regularly holding interactions with Customs Officers of Mid-Career Management Course, stated that it was very important to hold frequent interactions between Customs Officials and the business community as such interactions were a perfect source for having access to first-hand knowledge which helps in better understanding the issues and accordingly devising strategies for creating an enabling business environment.

    He said that the Customs Department, despite limited human resource, was sincerely working to facilitate the business community even in extraordinary situations.

    “Despite the outbreak of COVID-19 pandemic and subsequent lockdown last year when employees of most of the organizations starting working from homes, the Customs Department remained fully operational and not a single day leave was taken by any official that clearly shows the sheer commitment and dedication of the entire department,” he added.

    Speaking on the occasion, Senior Vice President KCCI Saqib Goodluck briefed the delegation about the overall operations of Karachi Chamber and how effectively it has been raising voice for resolving issues being faced by the business and industrial community, besides giving the valuable Budget Proposals which were compiled after consultation with all the stakeholders including all industrial town associations and sector-specific trade bodies.

  • FBR urged to abolish withholding tax, minimum tax for commercial importers

    FBR urged to abolish withholding tax, minimum tax for commercial importers

    KARACHI: Federal Board of Revenue (FBR) has been urged to abolish withholding tax and minimum tax for commercial importers in the upcoming budget 2021/2022.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for the upcoming budget said that commercial Importers of raw material pay withholding tax at 2 percent up to 5.5 percent which can only be possible if the gross profit is 30 percent, while the margin is not more than 2 to 3 percent on raw materials sold without value addition or change in form.

    By amendment to Section 148 of Income Tax Ordinance, 2001 through Finance Bill 2018-19, WHT paid on import of raw materials by commercial importers has been converted to minimum tax and the importers have been taken out of fixed tax regime (FTR).

    The chamber said that the concept of WHT is unique to Pakistan’s Tax regime which in fact is tantamount to putting the burden of tax-collection from undocumented entities on the compliant tax payers and avoiding the responsibility to broaden tax-base.

    After acquiring unprecedented powers to access information under Section 56 A and 56 B in Income Tax Ordinance, 2001, FBR and its subordinate departments must take the responsibility to identify non-compliant and undocumented entities/persons instead of laying the onus on existing taxpayers.

    The chamber proposed that concept of minimum tax and withholding tax may be abolished.

    Tax Payers may be allowed to pay certain Fixed Tax or opt for Audit regime and pay taxes in accordance with actual tax liability on Income.

    Furthermore, all Taxes deducted have to be adjustable against actual tax liability.

    Giving rationale, the chamber said that the commercial importers who are a major source of revenue will be able to resume their business and contribute to revenue as well as promotion of SMEs.