Lahore: The Lahore Chamber of Commerce and Industry (LCCI) Tuesday flayed the issuance of SRO 448 (1) 2011 whereby the government has withdrawn sales tax exemption on import of machinery.
LCCI demanded of the government to withdraw the SRO in the larger interests of the economy of the country. LCCI Senior Vice President Sheikh Mohammad Arshad said the withdrawal of exemption was blow to already crawling industrial sector. It will not only jack up the project cost by 17 percent while the financing requirements for existing projects would also go up.
He said the withdrawal of the exemption would open the door for under invoicing and smuggling, as the step would result in failure of industry to upgrade its technology, as industry would find it impossible to import modern technology. Through this action government has withdrawn sales tax exemption from not only general importers of machinery but also from the industrial units. If this withdrawal of exemption is absolutely necessary it should only be withdrawn from commercial importers and not the industrial units.