AMJAD ALI SHAH

PESHAWAR: Business community of Khyber Pakhtunkhwa has expressed its dismay over imposition of Infrastructure Development Cess (IDC) by the provincial government and demanded its immediate withdrawal.

“The KP government has levied 1% Infrastructure Development Cess (IDC) on the clearance of goods at dry port as compared to 0.9% and 1% by the provincial governments of Sindh and Punjab respectively.

Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI) President, Zulfiqar Ali Khan while speaking at a press conference at chamber house, here on Monday criticized the provincial government for imposing the infrastructure development cess and termed it as tantamount to double taxation, which could not be acceptable to them.

He said the collection of IDC is irrational and unjustified, and demanded the withdrawal of 1% levied with immediate effect.

The KPCCI president said the uncertain situation is still prevailed amid occurrence of incidences of target killings, extortion, and attack on police in Khyber Pakhtunkhwa. However, he said the nature of matters has only altered.

Flanked by the chamber Senior Vice President, Ammad Rasheed, Vice President Shuja Muhammad, former president Riaz Arshad, and executive members, he said the KP government assured that it would review the decision regarding Infrastructure Development Cess.

“We are demanding tax-holidays and special fiscal package from the federal government to revive business activities and attract investment in KP, while on the other hand, the incumbent provincial government has imposed new taxes on existing business community to discourage them, Zulfiqar said. He said the double taxation could not be acceptable to them, and asked the provincial government to immediately withdraw the IDC.

Despite the holding investment road-shows in Dubai and Karachi, the chamber chief observed that the Khyber Pakhtunkhwa government had completely failed to attract a single penny new investment in the province. He further criticized the provincial government for imposing a number of taxes in the financial budget for 2016-17, which could directly affect the poor masses.

“If the provincial government is interested in attracting investment, it should extend incentives to existing business community instead of putting further burden of taxes on them,” he suggested.

When asked about the any future course of action if the cess is not withdrawn by the provincial government, he said all options are open for this purpose, adding that a deadline has already been given to protest after Eid-ul-Fitr

Expressing concern over announced electricity loadshedding, the KPCCI president said the federal government had claimed to nearly generate 17,076 to 17,200 megawatts electricity and added to national grid. He said the KP has total allotted 16% electricity quota, including 3% for Federally Administered Tribal Areas.

He said the KP is contributing 2,732 megawatts electricity to national grid, despite the fact it was getting only 1600 to 1700 megawatts, which he termed as completely unjust with the people of the province. He demanded the government to immediately end unannounced prolonged electricity loadshedding in Khyber Pakhtunkhwa.