LAHORE, June 11: The proposed schedule of district governments’ taxes on industry has been rejected by the businessmen who say new taxes and proposed increase in the existing ones would unnecessarily create a financial crunch for the industry.

In a press statement issued here on Tuesday, the LCCI president, Dr Khalid J Chaudhry, said the rate of GST was enhanced from 12.5 per cent to 15 per cent by the federal government to cater to the needs of the provinces. Hence, he added, there was no justification for levying additional district government taxes.

Apart from income tax, customs duties, employees old age benefit deductions, social security, education cess, workers’ welfare fund and a host of other federal taxes and duties, he said the industry had to meet local bodies’ demands for professional tax, license fees, NoC fees for approval of building plans and development charges. The imposition of so many taxes was unreasonable and exorbitant, he said.

The LCCI Chief said the proposed increases and new taxes and fees would have a detrimental impact because the proposals are irrational, discriminatory and unreasonable.

Elaborating the anomalies in the proposed taxation schedule, he said the proposal to levy naqsha fees on the industrial buildings in the urban area at the rate of Rs16 per square feet and Rs10 per square feet in the rural areas was highly irrational, discriminatory and without any justifiable reason.

Similarly, the increase in fee for NOC on commercial and industrial buildings was also exorbitant, he said. To discourage massive population movement from rural to urban areas, he said, the district governments should not impose license fees on setting up of businesses in the rural areas.

Dr Chaudhry urged upon the Punjab governor to personally look into the matter and help the industry.