Published On: Tue, Sep 14th, 2021
Published in Category: Lahore

High cost of doing business hindering industrial growth: Mian Nauman Kabir

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Lahore: The Pakistan Industrial & Traders Association Front (PIAF) Chairman Mian Nauman Kabir has said that high cost of doing business has proved to be dangerous for Pakistan’s industry, discouraging investment both in capacity and capability.

Due to the high rates of electricity, power theft became rampant as the tariff was not affordable for the consumers.

He said that excess payment of General Sales Tax worth Rs85 billion have been paid to the Federal Board of Revenue while GST billed by independent power producers (IPPs) stood at Rs117 billion whereas the GST billed to the consumers stood at Rs202 billion. In addition to it, the government was collecting Rs22 billion taxes on fuel adjustment charges. The total amount of fuel adjustment charges with taxes stood at Rs383 billion where it comes to Rs361 billion without taxes and duties from the consumers. Keeping in view of this heavy burden, the rationalization of GST and other taxes in power sector is must to reduce the price of electricity, he suggested.

Mian Nauman Kabir called for lessening burden of heavy taxes on the power sector, as it has pushed the electricity prices higher and added to the already soaring cost of trade and industry.