Thumbs down: Industrialists oppose re-imposition of GIDC

Seek refund of collected amount as courts ruled against the tax

ISLAMABAD:

Industrialists have strongly opposed the re-imposition of gas infrastructure development cess (GIDC) through an ordinance, saying the tax will have a negative impact on the economy and the government should immediately withdraw it to save businesses from the repercussions.

Speaking at a meeting, Islamabad Chamber of Commerce and Industry (ICCI) President Muzzamil Hussain Sabri argued that there was no legal justification to re-impose the tax through an ordinance.

He pointed out that the main purpose of GIDC was to mobilise funds for the development of infrastructure for the Iran-Pakistan (IP) and Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline projects.

However, the government had failed to start any infrastructure development activity and it should immediately withdraw GIDC as its collection without undertaking any work on the planned projects was unjustified, he said.

“The government has set the GIDC collection target at Rs145 billion for this fiscal year, though it collected about Rs84 billion since 2011.”

Sabri stressed that the government must refund the entire collected amount, as the high court as well as the Supreme Court had given judgments against the tax.

He believed that the tax would dampen the growth of various sectors like manufacturing industries, exports and agriculture as it would augment the cost of production and make Pakistan’s products uncompetitive in the international market.

“Instead of taking anti-business measures, the government should facilitate the growth of business and industry in order to give a boost to manufacturing activities, generate more tax revenues, create jobs and increase exports,” he said.

Published in The Express Tribune, October 12^th, 2014.

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