Taxation measures alarm businessmen

LAHORE- The Lahore Chambers of Commerce and Industry (LCCI) on Thursday expressed their grave concern over the Federal budget 2008-09, demanding the govt to review the proposed taxation measures, as it will multiply the problems of manufacturing sector. 'We have serious reservations over the Federal budget. Therefore, we are proposing the govt to review the tax policy particularly about General Sales Tax (GST), raw-material, withholding tax on utility bills, and e-filing system', Muhammad Ali Mian President LCCI told reporters at a Press conference here on Thursday.
The LCCI President while appreciating the govt for taking care of agriculture sector in a winsome manner, deplored that the industry expecting similar favours, was unduly penalised.
He also termed one per cent increase in the rate of General Sales Tax as a harsh decision and totally against the expectations of the masses in general and the business community in particular. He said that this single step would take the inflation to new highs.
Muhammad Ali Mian further said that the Lahore Chambers of Commerce and Industry had forwarded a proposal to the govt for rationalisation of GST rate by bringing it to 12.5 per cent but the govt took totally an opposite step. He said that it would not only increase cost of production in the country but would also be an extra burden on end-users.
He said that the imposition of 2 per cent Withholding Tax on imports would further push the already crisis-hit industrial sector into muddle. The LCCI President said that last year, the then govt imposed Special Excise Duty on imports and the business community had demanded of its withdrawal but despite clear indications from the govt side, this Special Excise Duty was not waived in the Federal budget..