FPCCI Urges Sindh Government to Clarify Infrastructure Cess Hike

Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded clarification from the Sindh government regarding the recent hike in the infrastructure development cess on imports. The President of FPCCI, Mr. Atif Ikram Sheikh, expressed concerns over the increase from 1.25% to up to 1.85%, citing financial strain and questioning the legal basis of the levy. The issue was the focus of a meeting with Mr. Mukesh Kumar Chawla, Sindh’s Provincial Minister of Excise, Taxation, and Narcotics.

During the session, Mr. Sheikh highlighted the business community’s dissatisfaction with the lack of visible infrastructure improvements despite significant revenue from the cess. The Sindh government maintains that the cess is necessary for infrastructure maintenance, but legal disputes and perceptions of mismanagement have fueled ongoing tensions.

In response, Mr. Chawla proposed that if all court cases against the cess were withdrawn, the government would reduce the rate to 1.0% for the next three years. He also mentioned the possibility of removing the cess on solar panels. Additionally, Mr. Chawla addressed delays in issuing vehicle number plates, announcing that 200,000 plates would be delivered within a week and a new production facility would be established in Karachi.

Mr. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, acknowledged the government’s recent efforts to resolve the issue through dialogue but emphasized the need for tangible results and transparency. He reiterated the call for removing the cess on solar panels.

Furthermore, Mr. Abdul Mohamin Khan, Vice President and Regional Chairman Sindh, FPCCI, pointed out the negative impact of additional costs on export competitiveness. He proposed exempting imports under the Export Facilitation Scheme from the cess, arguing that it undermines the scheme’s purpose of supporting export-oriented industrial production.