Karachi Chamber of Commerce and Industry’s President has expressed deep concern over the news report that the recent cess levied on gas supply at the rate of Rs.87 has been slashed by 50 percent
Karachi, August 28, 2012 (PPI-OT): He is surprised over this decision and that also taken by taking only few businessmen while ignoring the entire business community of Pakistan.
Commenting on this decision President KCCI said that government has to understand that consumer going into the court of law is not very common and this is rather unusual. He elaborated the reason behind this move and said by giving an example of major sector which is textile which contributes 62 percent in total exports of Pakistan and 42 percent of the urban employment is generated through this sector that Government has to understand that every sector cannot pass on the burden of enhancement to the buyer. He said, “Yes, CNG sector can might do it as sale price and price of gas is predetermined by Government.
It might be possible in case of fertilizers but in case of export oriented industry it is not possible. As export oriented industry in the end has to go in the world open market for sale of its produce and Pakistan is not the only player and with this kind of increase exports which are already reducing would have a very drastic impact.
He said that the Government has to understand that this is a number game and if Bangladesh our arch rival in textile is providing gas to its industry at more than 50 percent difference and with zero rated custom regime in European Union would only support the Bangladesh and its industry.
They are already gone to 19 billion dollars textile exports and planned to achieve 25 billion target the year 2015. He cautioned that our textile exports which are rowing around 11 to 12 billion and have gone down further in year 2011 and 2012 would further reduce. He was of the opinion that Government needs to differentiate between the export oriented sector and must understand the competition in the world market where even one American cent matters.
He stated that it should be very well understood that any further increase in gas price cannot be observed in the table of costing and government has to segregate even if it is very very necessary for enhancement.
He also requested the government to appoint an international auditor/ cost accountant to find out the absorption capacity of export oriented sector. He requested the President of Pakistan, Prime Minister and the Minister of Petroleum and Natural Resources to reconsider the decision and withdraw the cess.
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