KATI demands tax cut

KARACHI: Korangi Association of Trade and Industry (KATI) on Thursday demanded the government to ensure lower taxes, saying any further increase in income and sales tax on electricity bills and super tax would push the industry into the brink of collapse.

KATI president Salman Aslam expressed reservations over imposition of new taxes of Rs38 billion by a Presidential ordinance.

He said along with the announcement of the agricultural policy, the prime minister should also announce the industrial and economic policy on the long-standing demand of the business community and industrialists so that investment in the country is promoted and the economy moves towards improvement.

Aslam added that the government had lifted the ban on imports of luxury and non-essential goods, following the demand of the IMF, which would lead to the import of luxury goods despite the additional duty and outflow of valuable foreign exchange, he feared.

He was of the view that the ban on imports should have been maintained by the government.

KATI chief welcomed the government's reduction in duty and import of raw materials, machinery, and other essential items, saying instead of imposing more taxes to collect additional revenue, the government should consult with the industrialists.