Businessmen oppose 17 percent raise in POL products prices

Business community opposed the likely 17% percent approximately increase in the prices of petroleum products from July 1 with the imposition of carbon tax on POL products. Office-bearers of MCCI in a meeting stressed upon the government to withdraw carbon tax on POL products immediately, as it would put highly negative impacts on business activities. President MCCI Anis Ahmed Sheikh in a meeting said that about 70% electricity was being generated in Pakistan through thermal means and was produced from imported POL products. So, this carbon tax would not only increase the financial miseries of 170 million people, but would also impact the industrial growth, as the input cost of fuel and electricity would increase manifolds, he further said. However, MCCI welcomed some positive steps of government including declaring income tax collected on export proceeds as final discharge of liability, reducing withholding tax from four to three percent for industrial importers, abolishing carbon surcharge on CNG, withdrawing requirement of NTN or CNIC for sales to unregistered purchasers, etc. Masud urged the government to announce a special relief package for the revival of industry. (June 27, 2009)