Senior Vice President Karachi Chamber of Commerce and Industry (KCCI), Jawed Bilwani has urged the provincial government of Sindh to suspend provincial taxes for at least two years. In a communication, he said that cost of doing business has enormously increased due to rising rupee dollar parity, multiplicity of taxes, increased levies such as social security and old age benefit, etc.
Tariff hikes in utilities such as power, gas etc, one percent further increase in General Sales Tax (GST) deductible on more than 95 percent items. These factors may also force the business community to work under capacity or closure of units in severe conditions.
Year 2009 is a year for survival for the trade and industry. Globally developed countries have designed bailout plans for their corporate, trade and industrial sector.
"What we are looking forward to is Pak-government helping in one way or the other for survival in the year 2009. Only those who survive in this year will work in the following years". He said that the business community fears colossal losses in trade and industry sector if the government does not bring some immediate relief to trade and industry.
Senior vice president noted that this is not the end, if industries close there would be massive unemployment, which the government will not be able to control.
He said that global economic recession also infected the economy of Pakistan and as upshot inflation increased, high difference of parity in rupee verses dollar and banks also increased the interest rate.
Major factors affecting the scenario was hike in the commodities prices in the international market and their impact was passed on to the commodity prices in the country.
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