LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel Chairman Mian Anjum Nisar, while calling for uninterrupted gas supply to the industrial sector, has urged the government to up-grade gas distribution and supply system to avoid losses.
Moreover, condemning the jump in rates of petroleum products, he stressed the need for reducing tax ratio on oil products to support the trade and industry, as the government has been charging very high petroleum levy and sales tax on petroleum products.
In a statement issued here on Sunday, Mian Anjum Nisar observed that with a view to improve the cash flow of businesses at this crucial time, the government will have to facilitate the industry through reduction in tax ratio on all items including the oil products. Besides lowering the markup rate, as the country's economy is going through a challenging phase of post-Covid-19 pandemic.
He said that at a time when country's GDP ratio was very nominal amidst high cost of doing business, the industry needs maximum support and relief.
He said that the economy of Pakistan had severely affected by the corona virus, as the industries particularly the SMEs are striving to deal with the post-Corona economic crunch and need to get support. Instead of providing subsidies or waivers, it is unjust to overburden the industries with hike in cost of production. An increase in petroleum products costs will further weaken the economic environment which is already under threat on various fronts.
BMP Chairman said the price of petrol was increased by Rs 2 per litre and that of high-speed diesel by Rs 1.44 per litre. The price of kerosene was increased by Rs 3.86 per litre and that of LDO by Rs 3.72 per litre, respectively.
He said that the high speed diesel is used mostly in the transport and agriculture sectors. Therefore, any increase in its price will lead to inflationary impact.
BMP Chairman observed that business-friendly policies should be adopted as other neighbouring countries of the region are giving to the industry. He said that sizeable cut in oil rates would certainly bring down the cost of doing business and our products would get their due share in the global market.
He called upon the government to address the key issues of the trade and industry, facilitate the economic growth along with improving tax revenue of the government. He said that the impact of Covid-19 has badly affected business and industrial sector, stressing the government to bring down GST in order to ease the difficulties of businesses.
Copyright Business Recorder, 2021
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