New tax threatens exports in KP: SCCI

PESHAWAR: Sarhad Chamber of Commerce and Industry president Fuad Ishaq on Monday expressed concern about the imposition of two per cent tax on exports as Infrastructure Development Cess and said the move had halted export consignments worth billions of dollars and rendered huge financial losses to exporters.
Along with trader leaders, manufacturers and exporters, Mr Ishaq told reporters at the Chamber House that the provincial government should immediately withdraw that tax and take measures to stop the relocation of export businesses from KP to other provinces.
He said KP’s economy was already in dire straits due to the government’s “ill-conceived policies and anti-business initiatives.”
The SCCI chief said the fresh move against trade and exports was harmful to the economy, so it should be withdrawn immediately.
He said the government was already collecting various duties and taxes on export consignments, so the imposition of infrastructure development cess on exports was uncalled-for.
“This unfair cess isn’t implemented anywhere else in the country. We will raise our forceful voice against it,” he said.
Mr Ishaq urged the chief minister to ensure the immediate withdrawal of that tax on exports.
He also demanded the removal of the chief minister’s adviser on finance and the appointment of a person with good knowledge and experience of business and trade in his place.
The SCCI chief said exports would come to a halt after the enforcement of the infrastructure development cess.
He said the industrial process had already been hit by the frequent increases in electricity and gas prices.
Mr Ishaq wondered whether bad moves against business, industry and trade in KP were happening under a well-planned conspiracy or due to inexperience of the chief minister’s financial team.
He praised sacrifices of the business community, people and security forces for peace and stability in the province.
“Noted people in all fields, including intellectuals, were born in KP but unfortunately, the government didn’t appoint any local as the finance minister,” he said.
The SCCI president said the chamber believed in the resolution of all issues through negotiation with the government.
He, however, said it won’t allow an unfair attitude towards the business community in the province.
Mr Ishaq said the SCCI would continue making a struggle for the withdrawal of the infrastructure development cess.
He announced support for the call given by the Central Tanzeem Tajaran for a shutter-down strike on Aug 28 against the imposition of the export tax.
On the occasion, trader leaders Haji Mohammad Afzal and Khalid Sultan, exporters and industrialists flayed the implementation of two per cent tax on exports and asked the government to facilitate business and trade instead of halting it.
Published in Dawn, August 27th, 2024