LCCI asks Punjab govt to scrap infrastructure cess

Officials argue it amounts to double taxation and is discriminatory

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the Punjab government to withdraw the Punjab Infrastructure Development Cess as it amounts to dual taxation and causes distress among industries of the province.

In a statement on Tuesday, LCCI President Malik Tahir Javed, Senior Vice President Khawaja Khawar Rasheed and Vice President Zeshan Khalil said the infrastructure cess was being collected at two stages, which was in fact double taxation.



Sindh levies 1.05% in tax on imported consignments and then Punjab imposes 0.90% cess at dry ports on the grounds that the province needs resources for maintenance, development and improvement of infrastructure to cope with goods traffic and deal with other purposes. However, they said, ground realities were quite different.

“The imposition of cess is discriminatory and will further burden existing taxpayers instead of broadening the tax net,” the LCCI office-bearers remarked.

They revealed that after the imposition of infrastructure development cess, businessmen were getting their consignments cleared in other provinces in order to avoid the tax. “This is not only hurting businesses of clearing agents and transportation companies that provide employment to thousands of people, but will also cause huge damage to the provincial kitty.”

They called the infrastructure cess an indirect tax because it was being charged on the movement of goods including raw material cleared at the dry ports of Punjab and was proving to be an impediment to economic growth of the province.

The LCCI office-bearers feared that trade and industry would get hit by the cess and it would lead to an increase in input costs.

They believed that the cess would also give an impression that business atmosphere in Punjab was not favourable.



They emphasised that businessmen of Punjab should be given some breathing space to supplement the provincial government’s efforts aimed at economic revival of the province. Businessmen of the province are trying to play their role in progress and prosperity of the country and they need a helping hand from the Punjab government.

The LCCI high-ups voiced hope that Punjab Chief Minister Shehbaz Sharif would take up the matter and withdraw the infrastructure development cess in larger interest of the business community.

Published in The Express Tribune, October 18^th, 2017.

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