Mansoor Sadiq

Small and medium-sized enterprises (SMEs), traders and industrial communities have taken exception to the imposition of taxes through the Finance Supplementary Bill (mini-budget), which will further increase inflation and unemployment ratio. Islamabad Chamber of Commerce and Industry (ICCI) Vice-President Muhammad Azhar-ul-Islam Zafar said that government should have taken the industry and trade community into confidence ahead of the mini-budget, but taxes were enhanced unilaterally, which burdened the people.

He said that the business industry and trade community is like a power engine behind economic growth, employment and revenue generation, adding that massive increases in gas and electricity tariffs with exorbitant fuel prices will ultimately damage the export-oriented sector, which is already on the decline amidst import restrictions.

Zafar said the government had to take the issues of export sector into consideration who are foreign exchange earners for the country. He said reduced exports will impact the balance of payments and revenue targets. The ICCI vice president said that an increase in gas and electricity bills will multiply the issues for SMEs which are also facing the consequences of import restrictions owing to the unavailability of raw materials.

Former president Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Nasir Hayat Maghu said that SMEs are the most affected sector in Pakistan amidst the multiple issues of raised production cost, increased tariff of gas and electricity.

He said that amidst unprecedented inflation and shutdown of large-scale and manufacturing industries, the government had increased the gas and electricity tariffs enormously. At the same time, the government also indicated that the subsidy will be phased out, which will increase the production cost of industries immensely.

“Amidst prevailing challenges, it has become impossible for the industrial community to continue their production. All these issues will definitely impact the delivery of export orders. Therefore, the government should not burden the business, industry and SMEs to meet the IMF (International Monetary Fund) conditions,” Nasir said.

The former president of the FPCCI said the imposition of Rs170 billion taxes will unleash a storm of inflation in the country, and also affect the national economy in shape of a slowdown. He said the government needs to take into consideration the reservations and concerns of traders and business community while taking important decisions regarding taxation and raise in tariffs.

Credit: Independent News Pakistan-WealthPk