MULTAN: The vending industry of Southern Punjab has welcomed Federal Finance Minister Ishaq Dar’s assurance regarding withdrawal of 2 percent extra tax from vending industry and termed it a step forwards for the survival of the sector, which he described as backbone of the engineering industry in the country.
In a statement issued here, MCCI’s sub-committee on engineering Convener Mian Iqbal Hassan emphasized that the government should also issue a notification for reducing in GST on tractor to facilitate the agricultural sector. He said that the government should withdraw 2 percent extra tax slapped on the vending industry forthwith.
However, constant opposition by the industry and protest against the delay in withdrawal of 2 percent additional ST, prompted the Finance Minister to take into account the overall view of the case, leading to his assurance to withdraw the extra tax. Iqbal Hassan said that vending industry should be taken into confidence on the issue of Auto Industry Development Policy (AIDP). “The issue has become all the more important in the wake of reports that the government was considering granting non-discriminatory market access to India,” he said, adding that the Commerce Ministry should call a meeting of the representative bodies of the industry immediately and take them into confidence over developments in the trade talks between India and Pakistan. He said that the industry was concerned with the tax regime under Safta which was likely to come into force as soon as the negative list for trade with India was withdrawn.
He further said that the vending industry is concerned that if final products are available at five percent then why would anyone import sub-assemblies at 20 per cent and components to manufacture the same finished product? Manufacturing in Pakistan will be finished and the country will be reduced to a trading economy.
