KARACHI, June 10: The Karachi Chamber of Commerce and Industry has urged the government to try to contain or curtail the cost of doing business in Pakistan that continues to be the highest in the region.
"In an era of globalization and liberalization of trade, where the maxim of "survival of fittest" is very much operative, all measures must be directed towards the cost-effectiveness of our products," said KCCI President Siraj Kassam Teli.
He suggested that taxation, commercial and monetary policies must be in harmony and be complimentary to each other, instead of being contradictory. In a statement, he said that it was reassuring that during the current year, investment, production and exports were manifesting signs of recovery, which must be reinforced through tax relief, incentives and facilities.
He expressed his apprehension over the proposed increase in tax revenue to Rs576 billion in the new fiscal year, saying that a rise of Rs66 billion from the previous tax revenue of Rs510 billion is meant for more tax burden.
Mr Teli also called for a cut in import duty on machinery and components to nil or negligible rates. He said smuggling-prone items, (the list of which has been provided by the KCCI to the government), be reduced to the extent where the temptation of smuggling is done away with.
"A large number of fiscal anomalies crop up every year, as a consequence of higher rates on raw material and relatively lower rates on finished products. The element of cascading must be the determining factor of the rate of duty."
The valuation must not be made a basis for revenue-mobilization, following the reduction in customs duty, he said, adding the GATT Code of valuation be adopted in its entirety.
