ISLAMABAD: The business community has expressed grave concerns over recent taxation measures taken by the government in the supplementary budget, saying that these measures will not only seriously hurt business activities but also create serious unemployment-related problems.

Talking to Business Recorder here on Friday, Khawaja Muhammad Hussain, president Multan Chamber of Commerce and Industry (MCCI), while expressing his reservations against mini-budget taxation said that the government had repeated past blunders. Hussain said the business sector had always been at the forefront of paying taxes.

However, the recent mini budget had once again imposed strict conditions on all sellers, including retailers and manufacturers for the registration of CNICs when selling goods to unregistered buyers, which would be a source of harassment for the business community and the business community rejected this condition.

He said the government had failed in creating a suitable business environment and inducting new business and friendly financial rules. Hussian said imposition of this strict condition is totally unfair because in such a case the business community would be further burdened.

He said in this way more business outlets would be forced to shut down. He said in the past, this condition had led to the closure of many businesses and nationwide strikes, causing irreparable damage to national economy. Considering the current economic and business situation of the country, if this condition is not removed then the same situation might happen again and the economy cannot afford it, he maintained.

The MCCI president said the manufacturing sector of the country is already paying 20 percent sales tax in case of sale of goods to unregistered buyers, while 17 percent sales tax in case of registered buyers. So, the government is not facing any loss of tax collection from sellers in case of sale to unregistered buyers.

He pleaded that keeping in view the current business circumstances, inflation, high rates of energy and rapid increase in unemployment, business community strongly appealed the government to withdraw this severe condition immediately.

However, Hussain also appreciated the government’s decision to provide speedy loans to the uplift of Small and Medium Enterprises (SMEs) on relatively low mark up, saying if the government manages to successfully implement this scheme, it will help job creation, reduce unemployment, and boost GDP.

Copyright Business Recorder, 2022