Over 25 leading trade bodies/chambers on Tuesday threatened the government of launching civil disobedience move, if it fails to implement a new economic revival plan resolving the national energy crisis, withdrawing documentation measures including rescinding of SRO 821(I)/2011 and withdrawing details of personal expenditures under Annex-D of the income tax return form.
"We, the leadership of all chambers of commerce and industries has unanimously decided that if our demands were not met within three months, we will be forced to consider other options including non-payment of taxes, utility bills and other government duties and tariffs," said Javed Akhtar Bhatti, President, Rawalpindi Chamber of Commerce and Industries along with heads of the countrywide chambers of commerce and industry while briefing reporters after their fourth annual meeting here at a local hotel.
In its recommendations about tax reforms, the conference demanded that (i) SRO 821 to be abolished immediately being not practicable and executable at all. (ii) Processes should be simplified enough so that common businessmen may understand the system. (iii) Tax base may be increased by adding new sectors instead of increasing the tax rate. (iv) The problems with Form D in income tax return should be resolved with immediate effect. (v) Afghan refugees should be brought into tax net (vi) The base of direct taxes may be increased as compared to indirect taxation. (vii) All provinces should tax agricultural income. And, (viii) all sectors should be taxed as per their percentage contribution to the national GDP.
The two-day session of chambers of commerce & industries conference was attended by presidents of 25 different chambers of commerce & industries from all over the country including Karachi, Lahore, Faisalabad, Sialkot and Federation of Pakistan Chambers of Commerce & Industries. The business community unanimously declared that all the chambers will support only those political parties (in next general elections) that could introduce a comprehensive economic revival plan for the country.
Bhatti said that presidents and delegations from all the chambers have come to the conclusion that federal government was directly responsible for the energy crisis, as there''s no serious efforts as yet. He regretted that electricity and gas was neither provided to domestic users nor industries that forced many of the local industrial plants to shift their businesses to other countries like Bangladesh and Kenya, terming the move as very alarming for national economy. He called upon the government to come up with patent policies to resolve all the issues in next three months.
The business community expressed grave concern over the mounting corruption in different national institutions and federations including Pakistan International Airlines (PIA), Railways, Pakistan Steal Mills (PSM) and National Highway Authority (NHA). "The participants of the conference demanded immediate removal of corrupt officials in the State Owned Enterprises (SOEs), as the government was facing an annual deficit of Rs 600 billion for severe misconduct and corruption in these institutions," said the Bhurban Declaration 2012, read out by President of RCCI.
The conference demanded that Civil Service Reforms report prepared by Dr Ishrat Hussain Commission be implemented. "Any permission required from the public sector should have 60 days time span to avoid embezzlement and corruption said the declaration.
The chambers welcomed formation of a task force on corporate governance for SOEs and also demanded provision of a draft report for comments. About granting Most Favoured Nation (MFN) status to India, the conference proposed that MFN status to India should be awarded after giving due consideration to the interest of the local manufacturing sector. It further suggested that the upcoming agreements (customs, certifications, visas) with India should be reviewed by the business community.
Bhatti said that business leaders have conditionally accepted the move during the conference, however, he asked the government to provide better facilities and securities to national industries to generate professional competency in the region.
In its recommendation on energy reforms, the conference demanded that immediate arrangements should be made to ensure uninterrupted electricity supply to industry including captive industry. It demanded of the government to make all-out efforts to provide natural resources to the country''s industrial sector without any discrimination.
"POL prices may be rationalised keeping in mind the best interest of the nation and business community as it directly hampers the cost of doing business in Pakistan," the statement stated, adding that budget should be separately allocated for the energy production. It further said that the mismanagement in energy sector specifically related to the circular debt requires immediate attention of the government.
It demanded that energy security plan must be formulated to resolve energy crisis on priority basis and it must be based on nuclear, hydro, Thar coal and thermal resources. In order to attract new investment in the generation of alternative energy, it further demanded that loans should be advanced on soft terms. It further said that private sector should be empowered for the production and distribution of electricity through corresponding policies.
Bhatti said funds should be allocated for energy sector in national and provincial budgets, urging the government to complete Pak-Iran Gas pipeline project on an emergency basis along with the completion of Thar Coal project.
A three-member committee was constituted to formulate suggestions regarding the expansion of tax net while reviewing the tax rates as well. Media was told that many recommendations made by last year''s conference were adopted by the government including Bhasha Dam''s construction and the announcement of energy policy while government allocated Rs19 billion for Warsak Power generation, Mangla Dam''s raising and Chashma Power plant as well.