Rs.375 billion taxation measures to retard growth of economy – ICCI
Islamabad (VOM ) : The Islamabad Chamber of Commerce and Industry (ICCI) has cautioned the government that the Rs.375 billion taxation measures proposed in the mini-budget would badly hit the business and industrial sectors and retard the economic growth of the country, therefore, the government should give a comprehensive reconsideration to its implications in order to save the country from further troubles. He said this while talking to a delegation of All Pakistan Marble Industry Association that visited ICCI led by Senior Vice Chairman Abdul Sattar Shah. Mian Sami, Arif Butt and others were in the delegation.
Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce and Industry said that the government has imposed 17 percent GST on the import of industrial machinery of mining and other sectors that would affect the growth of industry and exports. He said that the National Renewable Energy Policy of Pakistan aims to acquire a 30 percent share of renewables in the energy mix by 2030, but the imposition of 17 per cent sales tax on solar panels, inverters and related equipment would make it difficult to achieve this target. He said that the withdrawal of tax exemptions of Rs.160 from pharmaceutical sector and imposition of 17 percent GST on the import of pharma raw material would increase the cost of medicines for the common man.
ICCI President said that the Finance (Supplementary) Bill 2021 would raise the prices of many good items, computers, mobile phones and affect the growth of these industries. This would happen at a time when the inflation was already at record higher levels. He urged that the government should review the far reaching implications of mini-budget on the business and industrial sectors to save the economy from more difficulties.
Jamshaid Akhtar Sheikh Senior Vice President and Muhammad Faheem Khan Vice President ICCI said that instead of generating additional tax revenue for the government, the mini-budget would promote smuggling due to price hike that would lead to a negative impact on the local industrial and business activities. They urged that the government should consult with the stakeholders to address the key challenges of the economy and withdraw the mini-budget to save the country from more problems.