Hike in trade license fee would badly affect small businesses: ICCI

Islamabad, February 24, 2020 (PPI-OT):Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce and Industry (ICCI) said that due to multiple factors, conditions for businesses were not conducive while high inflation has eroded the purchasing power of consumers. In these circumstances, Metropolitan Corporation Islamabad (MCI) has made massive hike in trade license fee for small businesses that was highly unjustified and would badly affect their survival. He stressed upon the government to issue orders for immediate withdrawal of increase in trade license fee by MCI to save small businesses from further troubles. He said this while addressing a meeting of ICCI District Municipal Administration Sub-Committee.

Muhammad Ahmed Waheed said that due to absence of rent control act in Islamabad, rents of businesses were very high in Islamabad while other expenses of businessmen were also quite high as compared to other cities. He said that trade license fee for a certain business category was raised from Rs.25000 to Rs.2.4 million per annum, which was totally irrational and illogical. He said that fee for other businesses was also raised by thousands percent which was not affordable for them and stressed that MCI should immediately withdraw massive hike in said fee.

Tahir Abbasi Senior Vice President and Saif ur Rehman Khan Vice President ICCI said that as per local government act, any proposal to increase tax was first advertised in press and public hearing was arranged to hear the objections of stakeholders. However, MCI has not followed this procedure and raised the fee unilaterally. They said that 40 union councils have representation in MCI out of which 10 union councils were from urban areas while the rest of 30 union councils were from rural areas.

They said that trade license fee was not enforced in rural areas while the 10 union councils of urban areas had opposed the hike in trade license fee. They said that this move of MCI has created great concerns in the business community of Islamabad. They said that if MCI did not withdraw the hike in trade license fee, then a future course of action would be finalized in consultation with market associations of the city.

Mehboob Ahmed Khan, Convener, ICCI DMA Sub-Committee said that Mayor was from the opposition party and he was taking measures that were creating more problems for the federal government. He said that business community would not accept the hike in trade license fee and if it was not taken back, they would consider moving the court for protection of their rights.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk