LAHORE: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Punjab government to immediately withdraw the 0.9 per cent Punjab Infrastructure Development Cess (PIDC) imposed in the province.
FPCCI President Atif Ikram Sheikh said the province’s eight dry ports have become largely non-operational, three of which are directly connected to railway tracks. He added that reviving these facilities and shifting customs clearance from Karachi to Punjab could significantly reduce the cost of doing business while creating employment opportunities.
The FPCCI said transporting cargo by rail is considerably more economical and would also substantially reduce demurrage charges. It added that the Punjab Revenue Authority could generate higher revenue through increased economic activity than it currently collects via the cess.
Sheikh noted that, by contrast, when customs clearance takes place in Sindh, business costs rise. In the event of delays, demurrage charges ranging from $100 to $200 per day must be paid in foreign exchange, benefiting multinational companies. He added that Punjab’s revenue is adversely affected when clearance is carried out in Karachi.
The FPCCI further said the Sindh government has reduced its infrastructure development cess from 1.8 per cent to 0.85 per cent, a move welcomed by the business community. It also appealed to Sindh Chief Minister Murad Ali Shah to abolish the cess entirely.The body called on the governments of Khyber Pakhtunkhwa and Balochistan to withdraw similar infrastructure development cess measures imposed in their respective provinces.
