Businessmen warn of additional taxes on industry raw material

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The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has warned of imposing additional taxes, as the government is finalizing the mini-budget of Rs360 billion, planning to impose more taxes on about 140 industrial raw material and essential items, beside raising tax ratio on phone calls, leading to further hike in inflation which is already in double-digit.

The Businessmen Panel (BMP) chairman and FPCCI ex-president Mian Anjum Nisar said that the regular attempt of economic managers to impose new taxes and increasing oil prices along with the hike in power and gas tariffs will ultimately harm the government’s overall move of reducing the production cost for the businesses.

He said the government has decided to slap 17% GST on at least 140 types of consumable goods and industrial machinery to raise Rs353 billion worth of taxes.

Mian Anjum Nisar said that industry is the main victim of this IMF interference, as donors’ involvement in Pakistan’s economic matters and dictations to the policy makers for taking harsh measures would add to the economic miseries of the country.

The BMP Presidential candidate in FPCCI elections Irfan Iqbal Sheikh said that after new taxes in the mini-budget the prices of goods, including milk, cereals, bakery items, meat, chicken, gold, bicycles, cars including electric cars, mobile phones will rise, unleashing another wave of inflation in the country.

He said that inflation has jumped to 11.5% last month and the State Bank of Pakistan has also upward adjusted its inflation projection to the range of 11% for the current fiscal year, as the government is also in process of withdrawing electricity subsidies.

Irfan Iqbal Sheikh, who is former LCCI president, said that the inflation rate is the highest in the country among all the South Asian nations, according to a World Bank report.

 

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