KARACHI: President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zakaria Usman on Monday demanded immediate withdrawal of the increase in the rate of Gas Infrastructure Development Cess (GIDC) which has been increased by more than 200% in the federal budget.
In a statement, he pointed out that the increase would badly affect the industrial activities and the cost of doing business would be increased manifold.
“In case it is implemented, the normal gas bill of an industry will be become exorbitant,” he said and added that the government should facilitate the industries and business community to enhance the economic activities in the country and to generate surplus production so as to get the maximum benefit of GSP plus status recently achieved.
He further explained that that GIDC was applicable at the rate of Rs. 13/- per MMBTU in January, 2012 which was abruptly increased to Rs.100/- in July, 2012, almost 7 to 8 hundred times, thereafter the business community filed petitions against illegal increase in the court of law, the court issued stay order and the matter was still pending in the court.
He said that it was surprising to note that despite the above fact the government again increased its rate by 200%. “This is a great injustice and will hamper the manufacturing process in the industries operating on gas most of them are located in Sindh and Khyber Pakhtunkhwa,” he said and demanded that the increase should be withdrawn immediately.