Cottage industry: 'Exemption, utility limits need to be increased proportionately'

The Karachi Chamber of Commerce and Industry (KCCI) has emphasised the need that exemption limit and utility limit for cottage industry needs to be increased proportionately with the increase in inflation and utilities tariff and devaluation of Pak currency.
The chamber pointed out that the limit of cottage industry is Rs 5 m with limit of utility Rs 0.7m is outdated in view of inflation, (14% only in Q4FY09) 14% devaluation of Pakistan rupee (from Rs 71 on 7-7-2009 to Rs 81 per dollar on 20-4-2009), 22% increase (from Rs 6.18 in March 2008 to Rs 7.54 in November 2009 for b-1 category) in KESC tariff only during 9 months and 35% increase (from Rs 251.55/mmbtu in January 2008 to Rs 339.43 / mmbtu in January 2009 in gas price for industrial consumers only during last one year. High inflation and increasing trends of utility is now becoming unbearable.
Proposal
Benefit: More taxes shall be collected from Cottage Industry. The chamber further noted that used clothing is an essential commodity for the masses and poor public, with the inception of S.R.O 283(I)/2011, sales tax is levied at the rate of 6 percent. The outcome of imposing tax: It is in the shape of substantial increase in the cost of used clothing, making it too costly and beyond the reach of poor.
The chamber pointed out: During earlier regime of recent government in the 1970's this item was enjoying special concessions because it was used by the poor. traded by the uneducated individuals who are the sole persons earning for their families. Mainly consumed in rural areas by villagers and people who are the poorest of the poor.
In Northern areas of our country, where weather goes below freezing points and poor people often die due to cold, warm clothing like coats and jackets are a necessity of life. Used clothing is an item that is traded in bulk volume but the profit margins are low and they also do not constitute a major source of tax revenue.
WTO has also capped the import duty to 5%, considering the sensitive nature of used clothing and its potential end user. The chamber proposed for the utmost welfare of the poor to keep the item special concessions. The chamber further notated that sales tax exemption on Information Technology (Computer Hardware) is withdrawn. Making computer a taxable item will badly damage the scope of education, literacy and employment for masses. Chamber demands: Seventeen percent GST imposed on computer hardware should be withdrawn.