KARACHI: Keeping in view the perpetually intensifying hardships being suffered by small traders, industrialists, exporters, salaried class, daily wagers and many other segments due to harsh taxation measures, unbridled discretionary powers to FBR and unbearably high energy tariffs, President Karachi Chamber of Commerce & Industry (KCCI) Iftikhar Ahmed Sheikh vociferously appealed the government to revisit all the highly unjust taxation measures and bring down gas and electricity tariffs which were leading to descending exports, closure of small businesses as well as industries and subsequent retrenchment of employees, besides bringing a large number of small businesses and industries at the verge of bankruptcy.
“The alarming situation calls for extensive relief measures on war-footing basis to ensure that the wheels of industry continue to spin otherwise, our beloved country, which is already fighting hard for economic survival, would be plunged into the darkness of anarchy as the jobless and poor segment of society with empty stomachs will have no other choice but to come out on streets which would trigger a host of other issues and unmanageable challenges for the government,” warned Iftikhar Sheikh in a statement issued here on Friday.
While referring to his recent meetings and discussions with a large number of traders and industrialists who have been constantly complaining about the repercussions of all-time high cost of doing business,
Iftikhar Sheikh said, “We have never seen so many complains, demotivation and depression in the history of Karachi Chamber as ever day, we hear someone looking forward to either shutting down his business or curtailing production activities and go for layoffs which is really disheartening and a matter of grave concerns as widespread closure of industries would only lead to further amplifying the economic crises.”
Terming the imposition of 2.5 percent advance income tax on unregistered retailers under the Finance Act, 2024 as yet another arm-twisting tactic, he said that this move would put entire fast-moving consumer goods (FMCG) sector into the role of withholding agents which must be immediately withdrawn. Around 60 to 70 percent of goods supplied by FMCG sector to the unregistered retailers have been returned back to the manufacturers in outright defiance of the government’s latest measures which, KCCI members complain, would raise cost of goods, plummet sales and give a devastating blow to demand.
He was of the view that small traders as well as industrialists were already battling hard for survival but they were getting totally hopeless with each passing day due to excessively high gas and electricity tariffs which have to be rationalized at any cost. “Although the lawmakers have been assuring from time to time to bring down the electricity tariffs but, instead of doing so, the electricity tariff stays at an unbearably high level of 18 cents/ kWh to date whereas fixed charges have also been enhanced to Rs1,250 while gas was being supplied at a whopping tariff of Rs3,000 per MMBtu”, he said while asking that how a business of small trader or even an industrialist would remain active at such a high cost mainly fuelled by energy tariffs?
Copyright Business Recorder, 2024