LAHORE: Pakistan Businessman and Intellectual Forums (PBIF) President, Mian Zahid Hussain on Friday stated investors are avoiding imports of machinery due to high taxation regime.
He called for removal of taxes on import of machinery to encourage industrial development in Pakistan, which would enhance economic growth. Also, Mr. Hussain urged the government to resolve the issue of installation and usage of latest equipment and machinery by eliminating taxes and duties on imports of industrial machinery.
He stressed industrial development in countries happened due to zero rated tax regime, where machinery was exempt from all kind of taxes and duties. PBIF while speaking to businessman shared over 35 countries had imposed taxes on machinery imports, which led to the destruction of their industrial sector.
Furthermore, Mr. Hussain said Pakistan under SRO-769 had removed taxes on import of industrial machinery in 1980-85 and 2000-2005 which had contributed to industrial development and growth in Pakistan.
The implementation of SRO-809 according to PBIF president benefitted large players in the industrial sector which gained strength at expense of normal industries and commercial importers who are now in trouble.
Mr. Hussain said if government had removed taxes on import of industrial machinery, all industrial units would have converted to modern machines and equipment which would increase production and result in increased revenue and exports.
PBIF President added latest used machinery could be procured at cheap prices from various countries, but high tax rates enforced on weight of machinery instead of its price on $1.65 per kg basis, was disheartening industries not to import latest machinery, which was causing revenue losses and fall in exports.
