LAHORE– The Pakistan Industrial and Traders Associations Front (PIAF)) has reiterated its demand of passing on full relief of cut in oil prices in the global market to the industry, besides bringing key policy rate to 5 percent.
PIAF Chairman Mian Nauman Kabir, in a joint statement with Senior Vice Chairman Nasir Hameed and Vice Chairman Javed Iqbal, demanded the petrol price should be cut further, besides reducing taxes on sale of all fuel products.
Mian Nauman Kabir said that oil prices have experienced a steep decline owing to the pandemic causing worries in the global markets, coupled with the output war between Saudi Arabia and Russia. He stressed that significant cut in oil rates will not have any negative impact on the government as international oil prices have sunk tremendously.
He said that the government escalated the petroleum levy on POL products for pocketing additional revenue, as the levy on diesel was increased by Rs7.05 to Rs25.05 per litre. In the same way, the petroleum levy on petrol was also increased by Rs4.75 to Rs19.75 per litre.
With a view to improve the access of finance to SMEs, the PIAF proposed that the government should introduce a scheme of interest-free loans for the documented and taxpaying SMEs. Besides, the existing credit limits of the trade and all kind of industry which have taken loans from various banks should be enhanced.
Mian Nauman Kabir recommended the government to defer electricity and gas bills of the whole businesses for a period of six months. He proposed the government that source of income should not be asked on any kind of investment in all sectors of the economy for the next two years in line with the exemption given to the construction sector.
Senior vice chairman Nasir Hameed observed that the impact of Covid-19 has badly affected business and industries, stressing the government to bring down sales tax to single digit while key policy interest rate to at least 5 percent in order to facilitate growth of business activities, improving revenue, besides helping economic revival.
He said that traders, industrialists, and the whole business fraternity have always played a key role during trying times and now, in the current crisis, they need help to run the economy.
Nasir Hameed observed that the government had made commitments with the International Monetary Fund for increasing non-tax revenues in order to compensate the revenue shortfall. The revised fiscal plan relied heavily on high the petroleum levy.
PIAF vice chairman Javed Siddiqi said that small industry is facing declining demand in markets and facing problems in executing foreign orders, as the real problem is the high cost of production and a long list of duties and taxes. The government should give priority to the small businesses, by reducing its taxes to strengthen overall economic growth in the country.
