Former Chairman, Pakistan Poultry Association (PPA), Abdul Basit has said the imposition of sales tax on import of machinery would prove disastrous for industrial sector and urged the government to withdraw the decision. In a statement issued on Tuesday, Basit said such decisions show that policymakers are unaware of ground realities and are making decisions that are bound to push the country to the wall.
He said that the import of machinery would boost industrial activities and employment opportunities but it was very unfortunate that such decisions were being taken that were not only jacking-up the graph of unemployment but also hampering future investments. A number of new investors had already shelved their investment plans.
He said that such measures are not only destroying the national economy but also discouraging investment in the country. He said that in 2005, national industrial growth rate was 13.1 percent that has nose-dived to -3.60% in the year 2010.
Basit said that the business community was unable to understand the logic behind the imposition of sales tax on the import of machinery. He demanded of the government to withdraw sales tax on import of machinery immediately to save the local industry.