ICCI highly opposes government move of imposing 10 percent flood surcharge

  • September 21, 2010
Imposing 10 percent income tax surcharge on withholding tax collected from electricity consumers of commercial and industrial consumers, is a unwise move by the government, as it will put more undue economic pressure on commercial, industrial and general consumers, commented Mr.ZahidMaqbool, President Islamabad Chamber of Commerce & Industry addressing a meeting of tax committee at ICCI.

He said that due to unprecedented inflation and shortage of electricity and gas, businesses are already suffering a great deal and under such circumstance, imposition of 10 percent income tax surcharge on commercial and industrial consumers, will further slowdown the pace of business activities and would be a source of more inflation.

Plans of imposing 10 percent surcharge on all categories of taxpayers including salaried class is an unjust move that will bring more troubles of the general masses, who are already under high economic strains, stated Mr.ZahidMaqbool.

He said that government is receiving massive donations from the international community and stressed of devising a transparent and appropriate mechanism for the disbursement of that amount to the flood affectees.

First a details and comprehensive study should be carried out by the government for making an assessment of the damage and then a wise decision should be taken in the light of required amount for reconstruction and rehabilitation, he commented.

President said that people of Pakistan are contributing a lot to provide relief to flood victims and to help in reconstruction process, whereas, taking a solo decision by the government without consultation of stakeholder organizations, will create unrest in the general masses.

He said government should devise some other mechanism for generating revenue and funds and support can also be taken from Benezir Income Support Program to help the flood victims. 

Imposition of such tax will make Pakistan more uncompetitive in the international market, because increase in bills put a direct impact on the prices of all commodities and products, used domestically and are exported, he added.

Mr.ZahidMaqbool stressed the government to reconsider the decision to avoid giving further economic pains to the people.