AGL 8.42 Increased By ▲ 0.12 (1.45%)
ANL 10.75 Increased By ▲ 0.16 (1.51%)
AVN 78.90 Increased By ▲ 0.30 (0.38%)
BOP 5.50 Increased By ▲ 0.05 (0.92%)
CNERGY 5.47 Decreased By ▼ -0.12 (-2.15%)
EFERT 79.90 Decreased By ▼ -0.35 (-0.44%)
EPCL 69.00 Decreased By ▼ -0.60 (-0.86%)
FCCL 15.00 Decreased By ▼ -0.30 (-1.96%)
FFL 6.45 Decreased By ▼ -0.08 (-1.23%)
FLYNG 7.24 Increased By ▲ 0.06 (0.84%)
GGGL 10.87 Increased By ▲ 0.02 (0.18%)
GGL 16.85 Increased By ▲ 0.06 (0.36%)
GTECH 8.12 Decreased By ▼ -0.02 (-0.25%)
HUMNL 7.11 Increased By ▲ 0.07 (0.99%)
KEL 3.05 Increased By ▲ 0.06 (2.01%)
LOTCHEM 32.52 Increased By ▲ 1.75 (5.69%)
MLCF 28.61 Decreased By ▼ -0.37 (-1.28%)
OGDC 84.50 Increased By ▲ 1.75 (2.11%)
PAEL 16.80 Decreased By ▼ -0.17 (-1%)
PIBTL 6.00 Decreased By ▼ -0.08 (-1.32%)
PRL 18.07 Decreased By ▼ -0.03 (-0.17%)
SILK 1.15 No Change ▼ 0.00 (0%)
TELE 11.32 Increased By ▲ 0.07 (0.62%)
TPL 9.20 No Change ▼ 0.00 (0%)
TPLP 20.00 Increased By ▲ 0.12 (0.6%)
TREET 26.43 Decreased By ▼ -0.03 (-0.11%)
TRG 95.39 Increased By ▲ 0.79 (0.84%)
UNITY 20.07 Increased By ▲ 0.57 (2.92%)
WAVES 13.84 Decreased By ▼ -0.50 (-3.49%)
WTL 1.33 Increased By ▲ 0.03 (2.31%)
BR100 4,238 Increased By 51.2 (1.22%)
BR30 15,554 Increased By 80.4 (0.52%)
KSE100 42,495 Increased By 398.6 (0.95%)
KSE30 16,080 Increased By 197.2 (1.24%)

KARACHI: Shabbir Mansha, Acting President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has categorically denounced imposition of 10 percent super tax on large industries; which already pay hefty corporate tax of 29 percent and generate millions of jobs in the country, as well.

No country in the world can charge 39 percent tax to corporations and still keep the economy afloat, he added. Additionally, new private-sector and foreign investments dry up completely in an uncompetitive market, he said.

Shabbir Mansha explained that industries affected will include all major industries: cement, steel, sugar, oil & gas, fertilizers, LNG terminals, textiles, banking, automobiles, cigarettes, beverages, chemicals and airlines. He said these are 13 industries in total. Furthermore, all the remaining industries will be subjected to 4 percent additional tax.

Acting FPCCI Chief also expressed his shock that the federal budget 2022–23 was announced just two weeks back and it mentioned no super tax on industries. It is a highly abrupt, unfortunate and anti-industry measure.

Interest rate of 13.75pc will not let economy grow: FPCCI

He reiterated FPCCI’s stance that the government should not squeeze the existing taxpayers further and look for the avenues to broaden the tax net; as that is the only practical and sustainable way to generate more taxes without hurting the industries, exports, employment and the economic growth.

Shabbir Mansha noted with profound concern that Pakistan Stock Exchange (PSX) was unnerved on the decision and the trading had to be suspended on Friday after KSE-100 index lost 2,055 points or 4.81 percent in a quick span of merely 20 minutes.

He emphasized that the cost of doing business is already at an all-time high in the country and the interest rate of 13.75 percent will not let the economy grow at any meaningful rate; and, prices of electricity & gas have already made us uncompetitive as far as the exports are concerned. Additionally, there are rumours that interest rate may be further raised.

He added that the government should also consult with the stakeholders in business, industry and trade on how and when interest rate can be brought down; so that businesses can plan their year ahead accordingly.

Shabbir Mansha emphasized that imposition of PDL – though in a phased manner – will totally destroy the cost of doing business, competitiveness and will fuel the inflation like never before through its multiplier effect. He demanded that the government should take business community on board on its commitment with IMF on PDL.

Acting FPCCI Chief has also stressed upon the need to start a consultative process with the stakeholders on the implementation status of hike in electricity base tariff; impending PDL imposition and new or additional taxes as these costs will cumulatively destroy the business sentiment and industry will come to a halt.

Copyright Business Recorder, 2022

Comments

Comments are closed.