Price hike: Transporters warn of countrywide strike if FBR sticks to rise in tax

The new income tax will be applicable from today.

The new income tax will be applicable from today.

KARACHI:
All transport associations of cargo trucks, oil tankers and passenger bus services across the country have rejected the nearly 700 per cent increase in income tax on transport by the Federal Board of Revenue (FBR).

They have also warned of a countrywide strike if the decision is not withdrawn. The decision came after a meeting of the supreme council of All Pakistan Transporters, the apex body of all transport-related unions and associations, on Thursday at Mauripur Truck Stand. Talking to The Express Tribune, All Pakistan Transporters’ general secretary Hanif Marwat said that they were paying Rs68,000 per year in income tax for a truck carrying 60 tons but now the FBR has increased it to Rs428,000 per year for the same truckload.



“The new tax will be applicable from July 1 (today) across the country but all the transporters unions reject this nearly 700 per cent increase in tax and demand the FBR take back its decision,” he said. “Otherwise, we will be forced to go on strike by suspending all transport activities in the country.” Marwat added that they are in contact with bus, oil tankers and tractors unions of all the four provinces and within two days they will devise their future plan of action.

“We will meet the chief income tax officer and the excise and taxation director general to discuss the issue,” he said, adding that they will also write letters to the president and the prime minister. If all else fails, the associations plan to go to court against the FBR and try to get a stay order against this new tax.


“We are the largest tax payers in the country yet we have not been given any facilities,” he said, adding that even when their vehicles are looted and torched in daylight, the owners are never given compensation.

Even the operators of air-conditioned buses are upset with the new tax. Haji Abdur Rauf, the general secretary of Sindh Air-conditioned Bus Owners Association, said that they were paying Rs100 per seat annually for a bus but now it has been increased to Rs700 per seat. “All the bus owners associations reject this increase in income tax and demand the government take back its decision,” he said.

In denial?

Meanwhile, there are some who believe there has been a mistake. The FBR’s new income tax cannot be applied and it is even harder to be believed, said Capt. Asif Mehmood, the chairperson of the supreme council of All Pakistan Transporters. “It seems like someone has provided the wrong information to the FBR on which the taxes have been increased,” he said. “The FBR authorities have not tried to look into the background while taking this decision.” The meeting was also attended by the representatives of All Pakistan Oil Tankers Owners Association, Trucker that Supply Cargo to Nato Forces, Inter-city Bus Owners Unions and goods transporters association.

Published in The Express Tribune, July 1st, 2013.
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