Karachi Chamber of Commerce and Industry, All Pakistan Security Agencies Association demand withdrawal of 10 percent General Sales Tax on Security Services in forthcoming budget

Karachi, May 09, 2014 (PPI-OT): Senior Vice President of the Karachi Chamber of Commerce and Industry (KCCI), Muffasar A Malik along with Chairman of All Pakistan Security Agencies Association (APSAA), Col (R) Tauqeer ul Islam have demanded from government to withdraw the unjust 10 percent General Sales Tax (GST) on Security Agencies in the forthcoming budget for fiscal year 2014-15.

Addressing a press conference on Friday, Senior Vice President KCCI, Muffasar A. Malik pointed out that 10 percent GST on Security Agencies was imposed in last year’s budget, which was widely criticized by the business community.

“Although Chief Minister Sindh and Chairman Sindh Revenue Board assured to resolve this issue but no announcement has been made so far. “We expect that the government of Sindh will either completely waive off this exorbitant tax or reduce to 2 percent in order to give some relief to the perturbed business community”, he added.

APSAA representatives Brig. (R) Rashid Ali Malik, Maj (R) Munir Ahmed and Col (R) Ihteshamuddin were also present on the occasion. SVP KCCI further stated that it is the prime responsibility of the government to ensure security of the lives and property of citizens but the government has failed to do so, leaving no other option for the business community but to hire private security guards, resulting in additional expenses on security whereas the imposition of GST on Security Agencies has further exacerbated the situation.

Chairman APSAA Col (R) Tauqeer ul Islam termed GST as ‘Bhatta’ and said that the concerned authorities claim this GST as ‘Pass on Tax’ and advised the Security companies to take this Pass On tax/ GST from their clients. “Failure to collect this tax from clients leaves no other option for security companies but to pay this tax from their own resources otherwise they will have to face fines, imprisonment and even cancellation of their licenses resulting in suspension of business”, he added.

Chairman APSAA urged the government to either withdraw this GST or impose it on service charges of companies and not on their expenses whereas it should directly be taken from the clients. He said that security companies are already paying huge amount of Income tax along with Annual License renewal fee and various other taxes, contributing a major chunk to the national exchequer and playing key role in effectively dealing with the unemployment.

He informed that currently APSAA member companies and non-member companies were operating in all five provinces of Pakistan and most of the malpractices by security agencies were being carried out by non-member companies, of which many companies are illegal.

“It is heartening to note that Home Secretary Sindh, Dr. Niaz Abbasi has initiated crackdown against these illegal companies whereas a similar crackdown is likely to start in the province of Punjab as well whereas APSAA has also established a committee to effectively deal with these illegal businesses”, he added.

He informed that 200,000 guards, who are the force multipliers supplementing police officers deployed at various banks and consulates, were discharging their duties across Pakistan, of which around 55,000 to 60,000 guards are offering their services in Sindh province. All guards are verified by NADRA and Police and are given special training at APSAA training centres in Karachi and Lahore.

Chairman APSAA Tauqeer ul Islam, while expressing deep concerns over the crisis being faced by Security Service providers, said that the government must withdraw this tax in the next budget and if they fail to do so, the security service providers will have no other option but to react.

For more information, contact:
Aamir Hassan
Director Press/ Electronic Media and Public Relations
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road, Off Shahrah-e-Liaquat,
Karachi-74000
Email: info@kcci.com.pk, secretary@kcci.com.pk
URL: www.kcci.com.pk
Office: +92 99218001-09
Fax: +92 21 99218040

The post Karachi Chamber of Commerce and Industry, All Pakistan Security Agencies Association demand withdrawal of 10 percent General Sales Tax on Security Services in forthcoming budget appeared first on Business News Pakistan.

The post Karachi Chamber of Commerce and Industry, All Pakistan Security Agencies Association demand withdrawal of 10 percent General Sales Tax on Security Services in forthcoming budget appeared first on AsiaNet-Pakistan.

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