Karachi Chamber of Commerce & Industry (KCCI) President Iftikhar Ahmed Sheikh has strongly urged the government to rethink its taxation policies and reduce high energy costs. He highlighted the increasing difficulties faced by small traders, industrialists, exporters, salaried workers, daily wage earners, and other groups due to tough tax rules, unchecked FBR powers, and high energy tariffs. Sheikh warned that the current situation is pushing many businesses towards bankruptcy, leading to job losses and a potential economic crisis.
He stressed that immediate relief measures are necessary to keep businesses running and avoid worsening the economic situation. According to Sheikh, numerous traders and industrialists have expressed frustration and concern over the rising cost of doing business, with many considering shutting down or reducing their operations.
Sheikh criticized the 2.5% advance income tax on unregistered retailers introduced in the Finance Act of 2024, calling it a harmful policy that could negatively impact the fast-moving consumer goods (FMCG) sector. He noted that many FMCG goods are being returned to manufacturers due to these new measures, which could increase costs, reduce sales, and hurt demand.
Additionally, Sheikh pointed out that despite promises to lower electricity tariffs, they remain high at 18 cents per kWh, with fixed charges increased to Rs1,250, and gas tariffs at Rs3,000 per MMBtu. He questioned how small traders and industrialists can continue their businesses under such high costs.
