BMP KP seeks relief package to mitigate impact of virus on economy

Chairman, Businessman Panel (BMP), Khyber Pakhtunkhwa and FPCCI panel on Diplomatic Political Affairs, Mohammad Adnan Jalil has demanded special package to mitigate the impact of the coronavirus situation on the business community of Khyber Pakhtunkhwa.
He called for complete waive off of excise tax or its charging only at rate of 25% for the current financial year. Similarly, he called demanded exempting food items manufactured in Pakistan ion from all federal and provincial taxes.
In a statement issued here Sunday, Mohammad Adnan Jalil welcomed the formation of the task force by the provincial government for evaluation of the over impact of coronavirus on the economy of the province.
He termed the recent cut in the mark-up insufficient and called for bringing it into single digit. He said that the whole world is bringing down discount rate and some countries had brought it down to zero. He said that 11% percent rate is still high as compared to other countries.
Mohammad Adnan Jalil though appreciated decrease in the price of petroleum products. However, he further proposed for making in proportion to current rate of the commodity in international market. He said that instead of cut of only Rs.15 per litre it should be reached to at least Rs.30 per litre.
He said federal government has announced an economic stimulus package of nearly rupees one trillion, but it is directionless and lacking proper share for the SME sector.
He said that SME sector is closed since last ten days and they were facing difficulties in the payment of salaries to employees. He called for the launching of matching grant scheme for SMEs on the pattern of the World Bank implemented Economic Revitalization of KP and Fata (ERKF) Project for help the sector out of the current crisis.
He demanded the payment of at least Rs 0.1 million per month to SME businesses for payment of salaries plus utility bills starting from since March 2020. Adnan, who is also provincial of BMP, proposed the reduction of the provincial sales tax on services to single 5.7% for both, local or foreign brands. He further asked the task force formed by the provincial government to strongly recommend bringing down of the discount rate to approximately 6% and provision of logistic subsidies through Export Development Fund (EDF).
He said that though according to Prime Minister Imran Khan, the government has also given relief in the utility bills of Sui gas and other utilities and called for extension in the deadline of the bills of utilities including telecom.
He welcomed granting exemption to industry preparing essential items by the provincial task force. However, he further proposed the inclusion of automobile shops and their related workshops (car and motorcycle) in the same list.