Gas cess: Government urged to withdraw tax
Traders oppose re-imposition of GIDC though an ordinance
RAWALPINDI:
The Rawalpindi Chamber of Commerce and Industry (RCCI) has asked the government to withdraw the Gas Infrastructure Development Cess (GIDC).
Speaking to traders at a meeting, RCCI President Syed Asad Mashadi said that the tax will badly affect the industry and slow down the economic growth.
He said that Peshawar and Sindh high courts have already issued verdicts against the GIDC while the Supreme Court has also refused to give a legal cover to it, hence there was no justification to impose the tax through an ordinance.
The RCCI president said that the main purpose of the GIDC was to mobilise funds for infrastructure development of Iran-Pakistan and Turkmenistan Afghanistan Pakistan India pipeline projects, but the government has yet to start work on the said projects and there was no reason to collect the tax.
Mashadi said that the government has set a tax collection target of Rs145 billion through the GIDC in the current fiscal year while it has collected about Rs84 billion from consumers under this tax since 2011.
He said that the government should refund the collected amount to the consumers. He said instead of taking anti-business measures, the government should facilitate traders to do business.
Published in The Express Tribune, October 18th, 2014.
The Rawalpindi Chamber of Commerce and Industry (RCCI) has asked the government to withdraw the Gas Infrastructure Development Cess (GIDC).
Speaking to traders at a meeting, RCCI President Syed Asad Mashadi said that the tax will badly affect the industry and slow down the economic growth.
He said that Peshawar and Sindh high courts have already issued verdicts against the GIDC while the Supreme Court has also refused to give a legal cover to it, hence there was no justification to impose the tax through an ordinance.
The RCCI president said that the main purpose of the GIDC was to mobilise funds for infrastructure development of Iran-Pakistan and Turkmenistan Afghanistan Pakistan India pipeline projects, but the government has yet to start work on the said projects and there was no reason to collect the tax.
Mashadi said that the government has set a tax collection target of Rs145 billion through the GIDC in the current fiscal year while it has collected about Rs84 billion from consumers under this tax since 2011.
He said that the government should refund the collected amount to the consumers. He said instead of taking anti-business measures, the government should facilitate traders to do business.
Published in The Express Tribune, October 18th, 2014.