Daily Times

Acting President of the FPCCI, Shabbir Mansha, has strongly opposed putting a 10pc super tax on large industries, which already pay a high corporate tax of 29pc and make millions of jobs in the country. He also said that no country in the world could charge 39pc tax to corporations and still keep the economy afloat. In a market with no competition, private and foreign investments stop coming in completely.

Shabbir Mansha explained that industries affected will include all major industries; namely, cement, steel, sugar, oil & gas, fertilizers, LNG terminals, textiles, banking, automobiles, cigarettes, beverages, chemicals, and airlines – and, these are 13 industries in total. Furthermore, all the remaining industries will be subjected to a 4pc additional tax.

The acting FPCCI chief also expressed his shock that the federal budget 2022 – 23 was announced just two weeks back and it mentioned no super tax on industries. It is a highly abrupt, unfortunate, and anti-industry measure.

Shabbir Mansha has reiterated FPCCI’s stance that the government should not squeeze the existing taxpayers further and look for the avenues to broaden the tax net; as that is the only practical and sustainable way to generate more taxes without hurting the industries, exports, employment, and the economic growth.

Shabbir Mansha noted with profound concern that Pakistan Stock Exchange (PSX) was unnerved by the decision and the trading had to be suspended on Friday after the KSE-100 index lost 2,055 points or 4.81pc in a quick span of merely 20 minutes.

Shabbir Mansha emphasized that the cost of doing business is already at an all-time high in the country and the interest rate of 13.75pc will not let the economy grow at any meaningful rate; and, the prices of electricity & gas have already made us uncompetitive as far as the exports are concerned. Additionally, there are rumours that interest rates may be further raised. He added that the government should also consult with the stakeholders in business, industry, and trade on how and when interest rates can be brought down; so that, businesses can plan their year ahead accordingly.

Shabbir Mansha emphasized that the imposition of PDL – though in a phased manner – will totally destroy the cost of doing business competitiveness and will fuel the inflation like never before through its multiplier effect. He demanded that the government should take the business community on board with its commitment to IMF on PDL. The acting FPCCI chief has also stressed upon the need to start a consultative process with the stakeholders on the implementation status of hike in electricity base tariff; impending PDF imposition and new or additional taxes as these costs will cumulatively destroy the business sentiment and industry will come to a halt.