LCCI for restoration of tax exemptions

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to restore tax exemptions on solar panels, hybrid seeds, agri and industrial machinery in the larger national interest, a statement said.

LCCI President Mian Nauman Kabir, Senior Vice President Mian Rehman Aziz Chan and Vice President Haris Ateeq said that the current situation demands corrective measures for putting the economy back on track.

LCCI office-bearers said that imposition of 17 per cent tax on solar energy equipment was quite surprising given that the solar and wind power plants are the only alternative solution for cheap energy.

They said that the fossil fuel based power plants require costly imported furnace oil while the installation of solar systems is a one-time investment which provides continuous benefits for more than 25 years without additional expenses.

The imposition of tax on the solar energy equipment will damage the efforts of promotion of alternative energy sources, while the manufacturing of hi-tech sectors will also be affected by the proposed measures in the mini-budget, they added.

The industry is heavily dependent on the imports of raw materials as they are not available locally, they said, adding that the imposition of sales tax on the raw materials of the pharmaceutical industry would hinder the growth of the pharmaceutical sector.

They said that the withdrawal of sales tax exemption on the import of seeds through supplementary Finance Bill 2021, will have far reaching consequences for Pakistani farmers who are already facing challenges due to high input cost.

The LCCI officials urged the government to restore the tax exemptions in the larger interest of the business community and the economy.