July 15, 2008	Tuesday	Rajab 11, 1429

GUJRAT, July 14: Traders of Gujrat, a major industrial city of the country and hometown of the minister in-charge for commerce, Chaudhry Ahmad Mukhtar, have protested the recent inflation in the prices of petroleum products and gas and electricity tariff along with withdrawing subsidies and levying more taxes on the manufacturing sector. Terming the budgetary measures “draconian”, they also expressed solidarity with the Faisalabad Chamber of Commerce and Industry’s stance to protest the recent measures by going on strike.

Following an emergency meeting attended by representatives of the Gujrat Chamber of Commerce and Industry (GCCI), Pakistan Electric Fans Manufacturers Association (PEFMA), All Pakistan Pottery Manufacturers Association, Power Looms Association, Furniture Makers Association and Markazi Anjuman-i-Tajaran at the GCCI on Monday, chamber president Sheikh Khawar Rafique told reporters that the business community had presented its suggestions to the government prior to the announcement of budget.

He said the business community had also extended its cooperation on the issues of increasing electricity tariff and petroleum prices, as it understands constraints of the new rulers in running the country’s affairs. But, he said, the tariff of the country’s indigenous products like gas should not be enhanced similar to that of electricity and petroleum.

He said the government had increased the gas tariff to spend additional income on provision of subsidy to the agriculture sector. He said no doubt agriculture sector needed a support from the government and the industry sector did not have any objections on supporting the agriculture sector but the government should not do this at the cost of the manufacturing sector that had already been suffering from the last one year.

Khawar said that stakeholders of all traders’ organisations had demanded in a protest meeting that the government should withdraw levying 10 per cent withholding tax on electricity, an increase in general sales tax from 15 per cent to 16 per cent, increase of tax on cheques from 0.2 per cent to 0.3 per cent, increase of withholding tax on industrial imports from one per cent to two per cent and increase in gas tariff.

He threatened to join hands with other protesting traders’ bodies of the country if their demands were not met.

Earlier, a PEFMA meeting was also held at its office here on Monday to review the economic situation of the country and its impact on the fan industry. PEFMA Chairman Haji Muhammad Ilyas presided over the meeting attended by association’s representatives from across the country.

Participants of the expressed their concern over the rising prices of petroleum products and gas and electricity tariff and increase in taxes and demanded review of the situation.