SCCI Demands Further Reform Measures To Broaden Tax-base

PESHAWAR, (UrduPoint / Pakistan Point News - 19th May, 2024) President, Sarhad Chamber of Commerce and Industry Fuad Ishaq while giving proposals for fiscal Budget year 2024-25 demanded further reform measures to broaden existing tax-base.

He said KP is a net exporter of electricity and gas, despite the fact that provinces were being charged equal rates with other federating units, which is totally unfair and unjustifiable.

KP's total oil production is 31000 barrels per day, which is 42 percent share of the whole country’s oil production, Fuad said.

He suggested the establishment of an oil refinery in Khyber Pakhtunkhwa wherein oil reserves were available in surplus quantity.

Fuad asked to revive IDBP for the provision of loans on easy terms to promote industry in the province.

He mentioned that from 30 to 32 billion Dollars through human resources were official and the same figure amount was unofficial in the shape of foreign exchange. Therefore, he called for launching a special technical training program for human resources of the country.

Fuad Ishaq was speaking during the All Pakistan Presidents Conference held in Islamabad, said in a statement issued here on Sunday. The conference was attended by presidents of all chambers of Pakistan, FPCCI office bearers and association presidents.

The SCCI president said KP is producing 6500 megawatt electricity in which 2700 megawatt is utilized in summer and only 1100 megawatt in winter season, rest of the produced electricity exported to the national grid.

He said the US has imposed an anti-dumping duty on China, there is an opportunity of 100billion Dollar export for Pakistan. He asked the government to pursue Chinese investors to make investments and take benefit from 100billion dollar exports that will promote industrial and economic activities in KP and create employment opportunities for many people in the province.

Giving examples of Bangladesh, Japan and Korea, Fuad said these countries open import and produce finishing products by getting raw material and then exporting and increasing their foreign exchange.

The SCCI chief expressed grave concern over payment of Rs8 Trillion interests on loans.

Talking about hydel, nuclear and thermal power, Fuad said all these resources expenditure is only Rs11 per unit but due to inefficiency of power distribution companies, thieves and growing line losses, Rs23 per unit has been increased in it, calling for steps for its eradication at government level.

The chamber president, while commenting on the increasing gas crisis and low pressure said that people have been forced to disconnect gas over high gas prices and use alternative sources of fuel.

Emphasizing the need of broadening tax-base through reforms, Fuad said according to rough estimates, nearly 30million people were paid various taxes in which salaried class also included and it is quite visible that only 120,000 members of the business community were paid over Rs 1 Million taxes every year.

The SCCI chief called for reviewing IPPs to overcome the current economic crisis. He gave a proposal of issuance of all vehicle number plates at national level and to make distribution of income and tax-revenue as per population of the province. He informed KP is earning a revenue of Rs 1 Billion on head of vehicle registration and taxes while Islamabad is gaining Rs 20 Billion annually.

Earlier, the participants of the conference thoroughly deliberated on various proposals for FY budget 2024-25 and expressed grave concern over the huge burden of loans on the country.

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