Tuesday August 16, 2022

‘Industries to close down after super tax’

By Our Correspondent
June 26, 2022

FAISALABAD: Industrial organisations have expressed concern over the imposition of a 10pc super tax on industries.

Chaudhry Salamat Ali, patron-in-chief of the Pakistan Hosiery Manufacturers Association, said that the industry would face losses due to an additional 10pc super tax and they would close down.

He said that the government had already increased the price of electricity and gas by 30-40pc while the mark-up rate was increased to more than 13pc, which made it impossible for the local and export industry to continue business.

Pakistan Hosiery Manufacturers Association (North Zone) Chairman Mian Kashif Zia said the corporate sector was already paying 29pc tax and the imposition of the additional super tax would hurt it badly. “The tax hike would make it difficult for the industry to maintain global competitiveness,” he maintained.

Rana Zahid Tauseef, former chairman of the Pakistan Textile Exporters Association, said industries that were running a bit would shut down after the super tax. “The government is forcing those who are paying taxes not to pay taxes at all. It should first bring those who are not paying taxes into the tax net,” he suggested.

Atif Munir Sheikh, president of the Faisalabad Chamber of Commerce and Industry, said the government had disappointed the industry by presenting a new mini-budget in the name of super tax before the annual budget.

“The move will not only slow down the performance of the industrial sector but also lead to a dramatic increase in inflation,” he added.