President of Multan Chamber of Commerce and Industry (MCCI) Shahid Naseem Khokhar on Monday claimed that imposition of the Reformed General Sales Tax (RGST) under the prevailing economic conditions would have a negative impact on business activities.
He urged the government to have a detailed deliberation with all the stakeholders from the trade and business community to evaluate the impact and implications of the RGST. Shahid Naseem asked the government to seriously consider deferring the imposition of the RGST in the post-flood scenario, as it would put more strain on businesses, the general public and the economy.
According to Khokhar, developmental projects were essential for the future of the country and any cut would hamper development and the economic growth of the country. A cut in the development budget would hamper business and economic activities, which would have a direct impact on the economic growth of the country, he said. MCCI Chief has rejected the imposition of Reformed General Sales Tax (R-GST) and flood surcharge with effect from January 2011 and said the government should broaden tax net and tax the sectors not paying taxes in the country.
He suggested the government to take corrective measures before the situation gets even worse - otherwise the government should clearly announce to close down the industries and trading because they have totally failed to fulfil the requirements of the trade and industries"
He said imposition of 10 percent flood surcharge and increase in excise duty is highly detrimental to the country's manufacturing and trading sector. He said the government instead of safeguarding the interest of traders and exporters is fully attentive to the directives of the International Monetary Fund and World Bank. He said that the leather industry is already paying huge amounts of Rs 15-16 billion on account of various taxes to the government. He stressed the government to put off the measures and withdraw its unfriendly decision of implementing RGST as well as flood surcharge.