Government in spite of its tall claims has failed to give any relief to common people and simplify the tax procedures to facilitate business community and taxpayers, said Najam Rehan, President Rawalpindi Chamber of Commerce and Industry (RCCI) here on Thursday. "Tax procedures were made so complicated and it is forcing people to wind up their business to avoid the complicacies in paying taxes", Najam Rehan said in an interview with Business Recorder.
He was of the view that government has failed to give any relief to common people in spite of its tall claims of economic stability and heavy reserves of foreign exchange measuring more than 13 billion dollars. "If government have forex reserves of more than 13 billion dollars then why should it is not spending a little out of it for welfare and relief of masses", he asked.
He said that main source of inflation and price hike in the country is high prices of petroleum products resulting in increase in all essential commodities. "Taxes including duty, surcharge and development taxes imposed on POL products if withdrawn by the government would bring to lowest ebb of about Rs 16 to 18 per litre instead of Rs 48", RCCI chief said.
He criticised the government proposal of rise of about 40 paisa per unit in electricity charges saying that it would further aggravate the situation for industrial sector as well as for common people. "Government has provided Rs 70 billion to KESC to meet its deficit. If this amount would be given to Wapda for provision of cheap electricity, it would give better results", he said adding that the burden of power theft, misuse of electricity by Wapda employees is being put on common people.
Talking on privatisation policies of the government, Najam Rehan said that white elephant like KESC is not being privatised in spite of heavy loss, while profitable organisations like PTCL are at priority. Government should privatise KESC at earliest to save huge losses to exchequer and provide cheap electricity to people, he demanded.
Utility charges if not brought to lowest ebb would result in closure of industries in the country. "We have to make our products cost effective and better quality to compete in the international market. But the increasing burdens of utilities and irrational tax system is making our products expensive", he maintained.
Talking on sales tax issue, Najam Rehan said that traders are being asked to deposit 100 percent sales tax and at the end claim the remaining amount if sale was less. It would stop the cash flow and make business complicated. CBR, he said is asking for a summary of sale and purchase of products from traders, which would have negative impacts, he said adding that it would force businessmen to abandon their business.
Criticising the imposition of 01 percent withholding tax on withdrawal of more than Rs 25,000, he said that it would destroy the banking sector and give the illegal "Hundi" business a new life. Government asked taxpayers to demand the returns at the end of the year, which is another complication, he said.
Favouring the PTCL privatisation, he said that this organisation needs further investment, which is not possible by the government. "Government should privatise this institute but in honourable manner and after giving full protection to its employees", he added.
He called upon government to make sure that budget should be passed in a manner to give maximum relief to general public by bringing price hike under control. "Government if show some seriousness on price control, it is possible to bring the price under control", he concluded.