The Association of Builders and Developers of Pakistan (ABAD) has threatened to stop all construction activities in case federal excise duty (FED) is imposed in the 2011-12 budget.
"The option of strike or protest is on the cards, and we will seriously contemplate it if the government enforced FED on the construction industry," said chairman of ABAD Babar Mirza Chugtai while talking to Business Recorder after a session of a workshop on 'Budget Proposals 2011-12,' held at ABAD House here on Saturday.
He said that imposition of FED would destroy the construction industry, which generates economic activity and also augments the production of more than 70 allied industries. Further, he said, the construction industry, which is already being hit by soaring prices of steel, cement and other building materials, would be further pushed against the wall, if the government materialised the said proposal.
Shahid Malik, convenor of Budget Committee of ABAD, said the government is also considering reintroducing the repealed Wealth Tax Act (WTA) in the coming budget, which would create more room for corruption. He said the WTA was detrimental to growth of capital and promotion of investment, and urged the authorities concerned to drop the said proposal to facilitate business activities in the country.
He said that formation of cartels such as in cement sector, etc, led to create adverse impact on the construction industry. Therefore, the ABAD has strongly suggested to the authorities concerned to evolve effective mechanism to discourage such practices. Moreover, he said, there is ample need to implement the national housing policy of 2001 in coming financial year to revive the depressed construction activities in the country.