KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to ease the ongoing lockdown and allow the resumption of trade activities.
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KCCI demands policy rate at 4 percent
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Wednesday demanded the central bank to reduce policy rate to 4 percent instead easing in bits and pieces.
KCCI President Agha Shahab Ahmed Khan in a statement urged the State Bank of Pakistan (SBP) to bring down the policy rate from 9.0 percent to 4.0 percent in view of the extra-ordinary circumstances and a global scale economic crisis, which is certain to have a long term negative impact on Pakistan’s economy.
In a letter sent to Governor SBP Dr. Reza Baqir, President KCCI stressed that reduction in policy rate in bits and pieces is not enough to provide the much needed stimulus to the economy hence, it is necessary to significantly reduce the interest rate in a single step, to help the businesses sail through the unprecedented crisis.
He was of the opinion that there is now ample justification for reduction in policy rate because the inflation rate has declined sharply due to a steep fall in prices of crude oil, commodities and raw materials, while the demand has also been suppressed.
President KCCI appreciated the measures taken by SBP to support the industry and exporters to meet the challenges and financial crunch faced by them due to prolonged lockdowns to prevent the spread of Covid-19 coronavirus.
While acknowledging the interest rates of 4 percent and 5 percent for filers and non-filers respectively in the package, he suggested that in view of the special circumstances, the rate of interest should be zero to support the economy and sustain the industries at least for the next one year.
He however stressed that there is a dire need to announce a Rescue Package for Micro level Enterprises and SMEs which contribute around 40 percent to GDP.
He pointed out that unfortunately, no relief has so far been announced for Micro enterprises and SMEs, which are under much greater financial stress then the large scale businesses and their survival is at stake.
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Tax relief package to mitigate COVID-19 shocks under consideration, FBR tells KCCI
KARACHI: A top official of Federal Board of Revenue (FBR) has informed the office bearers of Karachi Chamber of Commerce and Industry (KCCI) that a tax relief package for business community was under consideration in order to dilute the adverse impact of coronavirus pandemic (COVID-19).
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Karachi Chamber advocates unregistered transactions
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) reiterated demand for eliminating condition of Computerized National Identity Card (CNIC) and allow unregistered persons to make purchases freely.
KCCI President Agha Shahab Ahmed Khan in a statement on Monday urged the government to immediately waive CNIC requirement for sales to unregistered persons and three percent further tax in order to revive the economic activities and business transactions.
In a letter sent to PM’s Advisor on Finance & Revenue Dr. Abdul Hafeez Shaikh, President KCCI said that waiver of CNIC condition and 3 percent Further Tax would result in release of major stockpiles of commodities and consumer goods into the markets and revenue collection will improve through liberalization of transactions.
“Small and Medium Industry will also benefit as a result of such measure because a very large volume of raw materials is supplied to SMEs by commercial importers who are stuck with inventories. In order to stimulate the economy, an across the board relief is required rather than selective assistance to already favored sectors,” he added.
President KCCI pointed out that in the Finance Act 2019, an amendment was made to Section 8 (Sub-Sec.1, Clause M) of Sales Tax Act, by addition of 10th Schedule, whereby it is mandatory to provide CNIC number of unregistered buyers in the invoice and Sales Tax Returns in addition to payment of 3 percent Further Tax. Similar statute has been added U/S.19A of Federal Excise Act, Sec.216A to Income Tax Ordinance and Sec.156A of Customs Act.
He noted that since the number of registered persons in Sales Tax regime stood hardly at around 45,000 all over Pakistan, it is not possible for suppliers/ sellers and manufacturers to provide the CNIC of buyers on account of all their sales. This condition has resulted in a slowdown of business transactions and proliferation of cash economy.
Agha Shahab said that the situation has further aggravated due to country-wide lockdown and disruption in supply chain due to the outbreak of coronavirus. Consequently, stocks and inventories with importers, manufacturers and wholesalers are accumulating while recoveries from markets have completely stopped and a large number of bank defaults are likely to take place due to liquidity crunch.
Unfortunately, while giving major relief to export sectors which hardly contributes 5 to 6 percent to GDP, the government has entirely ignored the larger sectors of industry and trade catering to domestic markets and contributing 94 percent to GDP and major part of tax revenue, he said, adding that it will prove to be detrimental for revenue collection by the FBR if the business transactions remain stalled while the government would surely miss the revenue targets and incur larger fiscal deficit as a result of imposition of CNIC provisions and 3 percent further tax.
“Hence, as a relief measure, the requirement of CNIC for sales to unregistered persons and 3 percent Further Tax has to be waived immediately in order to revive the economic activities and business transactions”, Agha Shahab stressed.
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Tax incentives for all sectors demanded; letter sent to PM
KARACHI: Business community has urged the government to grant tax relief package for all sectors of the economy in order to dilute the adverse effect of coronavirus.
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Karachi Chamber flays detaining industrialists
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has criticized arrest of industrialists especially textile mills owners for engagement in production activities during lockdown.
Agha Shahab, President, KCCI, expressed concerns over the arrest/ detention of owner a textile mill, stated that it was not a wise move to arrest anyone or raid industries but any violation of government’s order should be brought to KCCI’s and relevant industrial zone association’s notice so that the same could be amicably resolved through negotiations.
“The government should refrain from exacerbating their problems and finalize the Standard Operating Procedures (SOPs) at the earliest so that the industries could accordingly adopt precautionary measures,” President KCCI added in a statement issued.
While referring to Chief Minister Sindh’s recent meeting with representatives of the business and industrial community on April 4, 2020, President KCCI said that Chief Minister afterwards formed a committee which was tasked to outline the SOPs for industries but so far no response was received.
He stressed that export oriented industries should be allowed to operate on a condition that they will ensure compliance of precautionary measures including social distancing, use of masks, gloves and sanitizers to disinfect the coronavirus.
He hoped that the Sindh government would take serious notice of the situation and order the Committee to notify SOPs to industries at the earliest while the labor department should only be authorized to vigilantly supervise all the industrial activities.
The government will have to act really fast in this regard with a view to save the industries as prolonged closure of the industrial units is going to be really detrimental and disastrous for the entire economy, he added.
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Business community demands cut in tax rates to half for three months
KARACHI: Business community has demanded the government of reducing tax rates to half for at least three months in order to provide relief to industry and dilute impact of coronavirus.
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FBR extends time limit to 25 days for GD filing
KARACHI: Federal Board of Revenue (FBR) on Monday extended time limit for filing goods declaration to facilitate traders and importers, who were facing difficulties due to lockdown.
The FBR extended the time limit for filing of goods declaration from the existing 10 days of arrival of goods to further 15 days (total 25 days) for all Import General Manifest (IGMs) filed between March 17, 2020 and April 07, 2020.
The FBR said that the customs collectorates across the country were operating normally, however, on account of the ongoing lockdown by provincial governments to address the prevailing pandemic of COVID-19, the importers and clearing agents were facing hardship in filing of goods declaration within the time limit prescribed under Customs Act, 1969.
The consequent penalty on this account is causing undue hardship to the traders as the circumstances for late filing, which was beyond their control.
The FBR said that it had received requests from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) for extension in the time limit for filing of goods declaration.
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Business community welcomes PM relief package
KARACHI: Business community has welcomed the relief package of around Rs1.2 trillion announced by Prime Minister Imran Khan to ward off the negative impact of coronavirus.
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Karachi Chamber announces shut down amid coronavirus spread
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has announced shut down its offices for a week due to outbreak of coronavirus and rising number of infected persons in Karachi.
Keeping in view the outbreak of coronavirus and rising number of cases in Karachi, Chairman Businessmen Group Siraj Kassam Teli, Office Bearers and Managing Committee members of the Karachi Chamber of Commerce and Industry (KCCI) have decided to shut down KCCI for one week hence all departments of the Chamber will remain closed from March 24th to March 29th as a precautionary measure to save the public and staff from the life-threatening disease caused by coronavirus.
KCCI will reopen on March 30th, 2020, Monday, with normal office timings, said a press release issued here on Saturday.