Unaffordable: Constructors demand decrease in duties
Pakistani construction companies cannot even afford second hand equipment and machinery
Pakistani construction companies cannot even afford second hand equipment and machinery, which is being auctioned in the UAE. PHOTO: REUTERS/ File
LAHORE:
The Constructors’ Association of Pakistan (CAP) has urged the government to curtail import duty on major off-highway construction machinery and equipment and bring it down to 2%, as allowed to the agriculture sector. Total duties and taxes on construction machinery range from 31% to 46%, which adds to the already high priced items, especially vehicle mounted machineries and excavators.
Pakistani construction companies cannot even afford second hand equipment and machinery, which is being auctioned in the UAE, said the letter written to the Federal Board of Revenue (FBR) by CAP Chairman Engineer Nasir Kamal. He said that under these circumstances, the Pakistani construction industry (especially SMEs) is unable to mechanise their operation and increase capacity. This also hinders the adoption of new technology and innovations, thus limiting local companies to deliver large projects.
Published in The Express Tribune, April 24th, 2018.
The Constructors’ Association of Pakistan (CAP) has urged the government to curtail import duty on major off-highway construction machinery and equipment and bring it down to 2%, as allowed to the agriculture sector. Total duties and taxes on construction machinery range from 31% to 46%, which adds to the already high priced items, especially vehicle mounted machineries and excavators.
Pakistani construction companies cannot even afford second hand equipment and machinery, which is being auctioned in the UAE, said the letter written to the Federal Board of Revenue (FBR) by CAP Chairman Engineer Nasir Kamal. He said that under these circumstances, the Pakistani construction industry (especially SMEs) is unable to mechanise their operation and increase capacity. This also hinders the adoption of new technology and innovations, thus limiting local companies to deliver large projects.
Published in The Express Tribune, April 24th, 2018.