Traders want to be on board about CPEC industrial zones

Rawalpindi

All Pakistan Chambers Presidents’ Conference (APCPC) has urged government to take traders community on board on the 4th part of China Pakistan Economic Corridor (CPEC) which is ‘Industrial Zones Development’.

The two-day 9th APCPC moot which concluded in Bhurban on Tuesday also adopted joint declaration with an aim to promote business and trade activities throughout the country as without a stable economy the goal of self sufficiency could not be achieved.

The APCPC, hosted by the Rawalpindi Chamber of Commerce and Industry (RCCI), adopted five-point agenda including focus on CPEC, dropping the ratio of sales tax to single digit, reducing public debt, increasing tax net and tax base and poverty reduction.

Raja Amer Iqbal, RCCI president, while addressing the concluding session said that traders community recognised CPEC as a game changer. “It is urged to the government that information of 4th part of CPEC which is “Industrial Zones Development” shall be shared immediately with all the chambers of commerce and industry of Pakistan”.

He was of the view that the government should negotiate with the Chinese government to evolve a policy to have joint ventures between China and Pakistan for long lasting win-win cooperation and urged the government through the Memorandum of Undertakings (MOUs) with China, Labor intensive industry shall be relocated in Pakistan to boast the local employment.

Announcing the declaration about Income and Sales Taxes, the RCCI president pointed that the tax rate should be rationalised and tax base should be widening rather the government focus on tax to the Gross Domestic Product (GDP) to tax ratio.

He demanded that sales tax rate should be reduced to single digit bringing it at a par with some of neighbouring countries. Raja Amer recommended to stop all the raids on the business community by any authority of FBR including I&I.

Commenting on the issue of public debt, he said that pilling up of government debt is alarming and urged that public debt should be reduced and should only be utilised for development sector i.e. Public Sector Development Programme (PSDP) rather than the non-developmental heads.

He said the trader community consider CPEC as a game changer for the whole region. “It is urged to the government that information of 4th part of CPEC which is ‘Industrial Zones Development’ shall be shared immediately with all the chambers of commerce and industry of Pakistan”.

He apprised that in this regard a committee has also been established comprising one member each from all chambers across Pakistan while RCCI president would be its chairman. This committee would hold negotiations with the government on CPEC Special Industrial Zones (SIZ).

Raja Amer stated that the package negotiated for the Chinese industrialist shall be shared and at par packages shall be extended to the Pakistani Industrialist as well.

The Government of Pakistan should negotiate with Chinese Government to evolve a policy to have joint ventures between China and Pakistan for long lasting win-win cooperation, he said urging the government to sign Memorandum of Undertakings (MOUs) with China, resulting in Labor intensive industry relocated in Pakistan to boast the local employment.

The RCCI president Raja Amer said that Direct taxation is the only principal of progressive taxation while the indirect taxes(especially on essential items)at the higher rate of 17 %, is against the principal of equitable and fair taxation, means the items which are equally in used in the higher class as well in the lower class, at the standard rate of sales tax is against the principal of natural justice, it is suggested that the essential items (locally manufactured) must be free from indirect taxes like medicines etc.

As far as Tax levied on agriculture is concerned, he said that tax levied on Agriculture income should be a federal subject instead of provincial subject.

The two-day conference was attended by senior Vice President Rashid Waien, Vice President Asim Malik, Group Leader Suhail Altaf, SM Naseem, former presidents, members of the executive committee, civil society and a large of traders and industrialists.