Industrialists warn of protests unless FED is withdrawn
Say they are being harassed by FBR officials, additional taxes will cripple their businesses
Representational image. PHOTO: FILE
LANDI KOTAL:
Industrialists from the newly-merged districts on Thursday warned the government that unless the federal excise duty is not withdrawn, they will soon stage a sit-in outside the parliament in Islamabad.
This was stated by industrialists who staged a protest in Landi Kotal on Thursday.
Industrialists aligned with the All Merged Districts Steel Mills Association (AMDSMA) and the All Fata (Federally Administered Tribal Areas) Industry Association protested against the government’s decision to impose taxes on them.
They categorically rejected the federal excise duty imposed on the industrial zone in the Khyber Tribal District.
They warned that unless the federal government repeals the duty soon, they will be forced to shut down all industries in the newly-merged tribal districts.
The 35 members of the steel mills owner’s association announced that they will stage a sit-in in front of the National Assembly in Islamabad and in Peshawar unless the duty was withdrawn.
Talking to The Express Tribune, All FATA Industry Association President Aslam Afridi said that the federal government has already imposed levies on the raw material used by their industry apart from enhancing taxes on power and other inputs which have substantially increased their costs. As a result, he said, they had little choice but to increase the costs of their products.
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Unless the duty is withdrawn, he said that they will be forced to shut down their businesses because their product will be priced out of the market.
“The new taxes structures and uncertainty in the market will also force industry owners to shift their industry to neighbouring countries such as Afghanistan because they at least they provide cover and surety for your investment,” Afridi said, adding that they had been promised by the federal government that they will be exempted from taxes for a period of at least five years.
Despite that, Afridi said that officials of the Federal Board of Revenue (FBR) have started visiting their offices and were pressuring them to file their returns.
“First we suffered due to the militancy in the area, later we had to bear the military operations in the newly-merged districts to drive out the militants,” Afridi said, adding that it was the locals who had suffered the most.
“Now, by imposing unwise decisions we are being forced to either relocate or shut down our businesses,” the association president argued.
“If we lose our market due to the tough decisions of the government, more than 35 steel mills will be closed in the first phase while around 80,000 labourers will also lose their jobs, as these are the primary sources of employment in the newly-merged district,” he argued.
“We urged the government to fulfil their promise of maintaining the five-year exemption [to pay taxes], or soon we will start protests in the federal capital and Peshawar for our rights as our business will soon collapse,” Afridi added.
It is pertinent to mention that the Bara industrial Estate is amongst the largest industrial zones in the newly-merged districts with several industrial units have been set up in the Landi Kotal to supply Afghanistan and meet domestic needs.
Published in The Express Tribune, August 9th, 2019.
Industrialists from the newly-merged districts on Thursday warned the government that unless the federal excise duty is not withdrawn, they will soon stage a sit-in outside the parliament in Islamabad.
This was stated by industrialists who staged a protest in Landi Kotal on Thursday.
Industrialists aligned with the All Merged Districts Steel Mills Association (AMDSMA) and the All Fata (Federally Administered Tribal Areas) Industry Association protested against the government’s decision to impose taxes on them.
They categorically rejected the federal excise duty imposed on the industrial zone in the Khyber Tribal District.
They warned that unless the federal government repeals the duty soon, they will be forced to shut down all industries in the newly-merged tribal districts.
The 35 members of the steel mills owner’s association announced that they will stage a sit-in in front of the National Assembly in Islamabad and in Peshawar unless the duty was withdrawn.
Talking to The Express Tribune, All FATA Industry Association President Aslam Afridi said that the federal government has already imposed levies on the raw material used by their industry apart from enhancing taxes on power and other inputs which have substantially increased their costs. As a result, he said, they had little choice but to increase the costs of their products.
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Unless the duty is withdrawn, he said that they will be forced to shut down their businesses because their product will be priced out of the market.
“The new taxes structures and uncertainty in the market will also force industry owners to shift their industry to neighbouring countries such as Afghanistan because they at least they provide cover and surety for your investment,” Afridi said, adding that they had been promised by the federal government that they will be exempted from taxes for a period of at least five years.
Despite that, Afridi said that officials of the Federal Board of Revenue (FBR) have started visiting their offices and were pressuring them to file their returns.
“First we suffered due to the militancy in the area, later we had to bear the military operations in the newly-merged districts to drive out the militants,” Afridi said, adding that it was the locals who had suffered the most.
“Now, by imposing unwise decisions we are being forced to either relocate or shut down our businesses,” the association president argued.
“If we lose our market due to the tough decisions of the government, more than 35 steel mills will be closed in the first phase while around 80,000 labourers will also lose their jobs, as these are the primary sources of employment in the newly-merged district,” he argued.
“We urged the government to fulfil their promise of maintaining the five-year exemption [to pay taxes], or soon we will start protests in the federal capital and Peshawar for our rights as our business will soon collapse,” Afridi added.
It is pertinent to mention that the Bara industrial Estate is amongst the largest industrial zones in the newly-merged districts with several industrial units have been set up in the Landi Kotal to supply Afghanistan and meet domestic needs.
Published in The Express Tribune, August 9th, 2019.