Latest machinery can be imported on throw-away rates, if taxes are being eliminated.
Industrial Development is directly associated with zero rated taxation: Mian Zahid Hussain
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Friday said installation and usage of latest equipment and machinery should be resolved by eliminating taxes and duties on import of industrial machinery. Industrial development of countries is due to zero rated tax, where machinery is exempted from all kind of duties and taxation.
Mian Zahid Hussain said while talking to business community that it's important for to eliminate taxes on import of machinery for industrial development and Pakistan can get prosper through industrial revolution. 35 countries have so far imposed taxes on import of machinery, where industries have become destroyed.
He said that Pakistan under SRO-769 had eliminated taxes on import of industrial machinery in 1980-85, 1993-97 and 2000-05 during different Governments because of which industrial development in the country took place. After implementation of SRO-809, which is currently in place, some big players in the industrial sector have gained strength while normal industries and commercial importers are in trouble to a greater extent.
Latest used machinery can be bought on throw-away prices from different countries, but due to high tax rates implemented on weight of machinery instead of its price on $ 1.65 per Kg basis, industries are discouraged to import latest machinery and to shift on modern equipments resulting in decreased production, revenue and exports.
The veteran business leader said that if taxes have been eliminated on import of industrial machinery, all industrial units will shift on to modern machines and equipments which will flourish production, revenue and exports.
Current rate of taxation on import of machinery is 33 percent which after addition of different expenses increased to 35 percent, due to which industries are compelled to stick to the obsolete technology and avoid import of new machinery which is a strong barrier in industrial development and exports for which Government is required to take immediate action.