KARACHI: President of Korangi Association of Trade and Industry (KATI) Salman Aslam has expressed reservations over imposition of new taxes of 38 billion rupees by a Presidential Ordinance. Whereas, instead of keeping interest rate at 15 percent, it should have been reduced considering current situation, which would have stabilised economy.

Reacting to announcement of further increase in Income and Sales Tax on electricity bills and Super Tax he said government has issued this ordinance to get additional revenue of 80 billion rupees from IMF.

Due to this, difficulties of industry will increase enormously and it will be impossible to continue industrial production process because cost of production and electricity prices are already at highest level in history and a further increase in them will bring industries to the brink of collapse.  He said that along with announcement of agricultural policy, Prime Minister should also announce industrial and economic policy on long-standing demand of business community. Government is lifting ban on imports of luxury and non-essential goods following demand of IMF, which will lead to import of luxury goods despite additional duty and outflow of valuable foreign exchange. He said that ban on imports should have been maintained by government.

He welcomed government’s reduction in duty and import of raw materials, machinery and other essential items. Government should consult with industrialists on tax collection and if taxes are reduced including cost of production, tariffs of electricity and gas reduced, then business will be faster in country.

Published in The Daily National Courier, August, 26 2022

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