31 December 2004	Friday	18 Ziqa'ad 1425

KARACHI, Dec 30: Karachi Chamber of Commerce and Industry (KCCI) has urged the government to immediately reduce sales tax/withholding tax to zero rate on all sorts of raw material used in garments , bed linen and towel industries to prepare them for post-quota challenges.

The KCCI has also suggested that the scope of the area of duty-free import of raw materials be extended to all industries registered in sales tax for the last three years.

The chairman industry and privatisation sub committee of the KCCI, Naqi Bari said that he along with other KCCI members hold a meeting with Industries and Production Minister, Jehangir Khan Tarin and submitted proposals for the promotion of exports as the government is in the process of finalizing National Industrial Strategy.

The KCCI has suggested that duties and taxes should be levied when goods are sold in the domestic market through sales tax invoice or sales/custom duty/withholding tax challan individually (non refundable).

Besides, no question should be asked about source of income for new investments in industries both in machinery and capital. Bari asked the government to allow machinery and machinery spare parts import at zero rates.

The government should also focus on making India, China, Iran, Turkey, EEC, Centarl Asian States and Africa as its target markets which have more than three billion people.

He said that finished/consumer goods import should be against dollar and euro, which is purchased from open market or without State Bank support for foreign exchange. The government should ensure supply of uninterrupted power for continuous running of industries.

KCCI also urged the government to privatize EOBI and SESSI. All labour benefits e.g. social security, EOBI, group insurance, etc., should be paid to workers in the shape of State Bank voucher on national labour car and should be brought under one head namely "workers benefits fund."