President Tribal Area Chamber of Commerce & Industry (TCCI) Haji Ghulam Ali has demanded of the federal government to withdraw the levy of 15 percent Central Excise Duty (CED) on ghee manufacturing units of Fata and Pata.
Talking to newsmen here on Monday, he said that the levy of the CED and extension of General Sales Tax (GST) on electricity consumption in these areas would stop the ongoing development.
He demanded of Federal Finance Minister Shaukat Aziz and officials of the Central Board of Revenue to withdraw the decision in larger interest of the development of these backward areas.
The TCCI chief claimed that during a recent meeting in the federal capital the finance minister and CBR officials have assured the resolution of the matter.
He said: "The federal government has agreed with our stand and accepted the problem as a genuine one." He said that the government did not want to close down the industrial units. However, the ghee manufacturing units of these areas have been given temporary relief. He was confident that the government would shortly withdraw the decision of the levy of CED.
Haji Ghulam Ali said: "Both Fata Pata comprise of backward areas of Pakistan. These areas constitute barren, infertile and far-flung hilly locations absolutely devoid of basic amenities and facilities, like education, employment, communication and very few opportunities and incentives for industrialisation."
The ghee units in the area were established between 1972 to 1976 to provide better living standards and to provide opportunities for business and trade. These units later on privatised and publicly auctioned. The said ghee units were purchased by the inhabitants of the tribal areas and made a huge investment for its revival.
He said: "A particular lobby, who is intentionally creating hurdles in the development of the tribal areas, started a baseless campaign to stop development of this backward part of the country.
The decision of the federal government to levy CED was widely protested in the seven districts of the defunct Malakand Division and a complete strike was also observed to say no to it.
The TCCI chief further said that the elected public representatives from these areas have also told the government that they did not accept any such tax, saying that in present circumstances, the industrial units of this part of the country would not be able to compete with the units of the settled areas.
He said: "The labour charges in the tribal areas are double than the settled areas. They are to purchase water, which is another burden on them while the heavy load-shedding and use of electricity generators also, double the cost of production".
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