Islamabad Chamber of Commerce & Industry (ICCI) has shown great concerns over government's move to eliminate subsidies on power tariff, fertiliser and sugar in the coming budget and termed it an unfavourable decision, saying that especially in the present conditions, as it will further raise inflation and cost of doing business in the country.
Chairing a meeting, Zahid Maqbool, President ICCI said that business community is fully cognisant of the challenges being faced by the government in improving revenue collection. However, he said, the better option of increasing revenue is to create enabling environment for growth of business & industries, rather than putting more pressure on the already distressed people.
Maqbool pointed that inflation has already increased by more than 13 percent after coming down to 8.9 percent in October last year as the government phased out subsidies on electricity and adjusted prices of petroleum products. The new move will bring more miseries to people and dampen the growth of business activities, he added.
The traders observed that despite strong reservations of the business community on VAT throughout the country, government is all set to introduce this tax from 1st July 2010, which will create backbreaking inflationary pressure while ending of subsidies will push more people down the poverty line.-PR
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