Business community of the city wonder what they are to do when their own government turns against them and adopts all possible means at its disposal to ensure that carrying on businesses and industrial activities's are made as difficult as possible.
Commenting on imposition of 10 percent flood surcharge and approval of Reformed General Sales Tax (RGST) by Cabinet, they expressed their sentiments that the time is not far away that when we will lock all industrial units and workers will go home. They said that the main affectees of this tax would be the end consumers of goods, importers and manufacturers will pass on this tax to consumers who are already facing serious financial crises owing to high prices of goods.
They pleaded that the government must imposed tax on agriculture income to generate revenue and also advised the rulers to curtail their expenses instead of implementing the dictation of IMF. They said that there is no difference between Awami government and dictators rule. They said that industries are facing serious crises due to non- availability of gas and power to run industrial units.
As a result of this, there is 36 percent higher cost of manufacturing as compared to the then competition countries in international market. Fast declining law and order conditions, high mark-up rates, ever increasing oil prices, power and gas tariffs are hindering the growth in the manufacturing sector.
President Karachi Chamber of Commerce and Industry (KCCI), Mohammad Saeed Shafiq said that the present government has only one agenda to impose taxes, increase prices and make general public life miserable. He said imposition of flood surcharge and RGST will create tremendous problem for business community. He was of the view that manufacturing sector will pass on the impact of RGST to end consumer in the shape of price increase.
Chairman Korangi Association of Trade and Industry (KATI), Syed Johar Ali Qandhari said that the business community is not satisfied with the imposition of flood surcharge and RGST. He said that the time is not ripe to impose any new tax. Manufacturing sector can not sustain any more tax in present critical economical circumstances. At present manufacturing sectors need incentive to fight for its survival, he added.
Former Chairman, North Karachi Association of Trade and Industry (NKATI) Captain Moiz Khan claimed that around 9000 industries all over the country already have been closed down due to high cost of manufacturing and remaining will be closed after imposition of RGST and flood surcharge. He said that time is not far away when a large segment of the society will have no money to even buy pulses.
He said that flight of capital has already started and imposition of any new taxes or increase in taxes would boost further flight of capital. Price of Pakistan produces are very high as compared to other countries in export market and any further increase in taxes will have a serious negative impact on Pak exports. Foreign buyers may cancel export orders, he feared.
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