Baloch industrialists call for withdrawal of export tax

Warn infrastructure cess will devastate exports, discourage investment

KARACHI:

Leading industrialists in Balochistan have demanded that the provincial government withdraw the Balochistan Revenue Authority's (BRA) notice regarding the collection of an infrastructure cess on all exports.

They described the notice as disastrous for the region's exports and urged that it be rescinded immediately.

Speaking to The Express Tribune on Monday, prominent industrialist Ismail Suttar said, "The infrastructure cess on exports is a wrong and bizarre decision, tantamount to hostility against the country. I'm sure it's some sort of glitch and nothing more. Sindh has no such tax as yet."

He added, "It would be better to impose such a cess on imports or Afghan transit trade."

Suttar criticised the BRA for taxing exports, noting that globally, countries offer rebates on exports. He also shared that in a meeting held with BRA Chairperson Noorul Haq Baloch, the chairperson admitted the error and agreed it would be rectified immediately.

"It is strange that the country calls for boosting exports and reducing reliance on imports, yet such circulars imposing new taxes discourage not only existing industries but also send a negative message to potential new investors in the province," Suttar added.

"Exports should not be taxed; instead, they should be incentivised if we are serious about the country's progress and the prosperity of our people."

Hub Chamber of Commerce and Industry (HCCI) President Yakoob Karim pointed out that the industry in Balochistan is already facing significant challenges due to a lack of essential utilities such as energy, gas, and water, which are vital to maintaining production.

Despite these obstacles, industrialists in the province, particularly in Hub, which hosts 99% of Balochistan's industries, are striving to keep their units operational.

Industrialist Maqsood Ismail highlighted that over 75% of the province's revenue is generated by Hub's industries. He warned that instead of providing relief, the imposition of new levies and taxes would leave industrialists with no choice but to consider relocating their operations to more business-friendly regions.

It is important to note that many of these industries operate across provincial borders and already pay all applicable taxes when exporting their products.