K-P govt’s secret tax move stirs backlash

Business community cries foul as caretakers slap 2% cess on all imports into province

PESHAWAR:

Khyber-Pakhtunkhwa Caretaker government has imposed two per cent Infrastructure Development Cess on all the merchandise imported into the province.

Official sources told The Express Tribune that the proposal for the tax was under consideration for past few years and in the past it was suggested that it should be levied on the Afghan refugees and it should be used for infrastructure development in the province.

However, this proposal was turned down and now the caretaker government has silently imposed it. A formal notification has also been issued by the finance department.

On the other hand, the business community in K-P, represented by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Khyber-Pakhtunkhwa chapter and various city chambers across the province, vehemently opposes the recently announced 2 per cent Cess on essential commodities.

This tax, determined by the prices of goods, is seen as a potential catalyst for a new wave of inflation.

Key representatives of the business community have united in calling for the immediate withdrawal of the Finance Department’s notification to prevent adverse economic consequences.

Regional In-charge FPCCI in K-P, Haji Muhammad Afzal, and Coordinator Muhammad Akbar Khan expressed deep concern over the impact of the tax on businesses.

Read FPCCI-SCC to collaborate

Arshad Hayat, President of Kohat Chamber, Tayyab Swati, President of Haripur Chamber; Muhammad Javed Khan, President of DI Khan Chamber, Zahir Shah, President of Mardan Chamber, Rahat Ali Khan, President of Swat Chamber, Qazafi, President of Chitral Chamber, Salman Elahi Malik, President of Peshawar Chamber of Small Traders and Small Industry, Ghulam Hussain, President of Mardan Chamber of Small Traders and Small Industry; Muhammad Babar Khan Swabi, Khyber Chamber of Commerce President Syed Jawad Hussain Kazmi, Noor Alam Badshah, Lower Dir Chamber of Commerce President, Muhammad Afzal Khan, Bajaur Chamber of Commerce President, Sikander Khan, Charsadda Chamber of Commerce President, Mohammad Ishaq, Sarhad Chamber of Commerce and Industry President; Mohammad Shoaib Khan, Malakand Chamber of Commerce President, Haji Qadirullah, North Waziristan Chamber of Commerce President, Haji Saifur Rahman, South Waziristan Chamber of Commerce President, Khawaja Abdul Qudous, Mohmand Chamber of Commerce President, Syed Minhajuddin Shah, Abdul Rasheed Khan, President of All Pakistan Commercial Exporters Association, and Abbottabad Chamber of Commerce issued a joint statement condemning the decision of the caretaker government of the province.

Published in The Express Tribune, February 29^th, 2024.