100 percent raise in tax to deprive logistics sector of profitability: FOAP

The Fleet Operators Association of Pakistan (FOAP) has said that 100 percent increase in tax will dry the logistics sector of any profitability remaining after the increase in cost of doing business multifold.
The country's services sector makes 56 percent of the national GDP, FOAP said in a press release. This sector has created thousands of jobs that are contributing to the national kitty. The sector is paying sales tax and indirect taxes. Service sector play a pivotal role in facilitating the export industry of Pakistan & helped boost the annual exports of Pakistan.
The present and the previous governments were under the impression that net profit of the service sector is more than 15 to 20 percent hence they introduced 2 percent under clause 94 of the part IV of the second schedule. "We accepted it with heavy hearts and in the national interest."
Targeting the service sector is unjust and incomprehensible and since it is the only sector performing and delivering. Why the governments target this sector. "Instead we should be given benefits." The government should stop milking the same cow over and over ie. taxing the already heavily taxed segments.
As many as 100 percent increase in tax will dry the logistics sector of any profitability remaining after the increase in cost of doing business multifold. The brunt will fall on owners, employees and drivers of the industry resulting in unemployment. Therefore, the increases in taxes must be withdrawn; instead reduction in taxes is required due to increase in costs and indirect taxes.
All other industry sectors enjoy minimum tax of 1.75 percent in Pakistan then why 4 percent is being pushed for Services. "We will be forced to close our business, rethink our business models and terminate employees to cough up 56 to 58 percent in real taxes from our profitability."
Fleet Operators Association of Pakistan (FOAP) stands in solidarity with the services industry, other associations and allied businesses in their rightful demands.
Fleet Operators Association of Pakistan (FOAP) www.foap.com.pk is a registered association acting as a forum of all fleet operators of Pakistan. We are the trade association representing the logistics sector, which is duly licensed by Directorate General - Trade Organizations http://www.dgto.gov.pk/, Government of Pakistan and registered with Securities and Exchange Commission of Pakistan www.secp.gov.pk as a corporate body.-PR