Income tax payable: MCCI opposes imposition of 15 percent surcharge

The Multan Chamber of Commerce and Industry (MCCI) on Thursday opposed imposition of one-time 15 percent surcharge on income tax payable during the financial year 2010-11. They opposed increase in Excise Duty and Sales Tax on all inputs including imports and withdrawal of 17 percent GST exemption on fertilisers, pesticides, tractors, leather, sports and surgical instruments.
MCCI president Shahid Naseem Khokhar said it was very unfortunate that the government resorted to what they claimed was a 'Mini budget' at a time when the government was bridging the resource gap by printing new notes worth over Rs 2 billion daily. As the incomes are stagnant or declining since the last three years and the average increase in energy tariffs has been very high, even one or two percent increase in taxes would create a dooms day scenario, he added. He said the decision would give a bad name to the government as the prices of a number of items, including clothes, shoes, fertilisers, sports goods and tractors would be going up in coming days.
The MCCI President said that the decision would bring a tsunami of inflation that would be entering into a new phenomenon. He said that it was very unfortunate that the "Mini budget" was announced at a time when the government was bridging the resource gap by printing new notes worth over Rs 2 billion daily. "As the incomes are stagnant or declining since the last three years and the average increase in energy tariffs has been very high, even one or two percent increase in taxes would create a Dooms Day scenario."