Sialkot: The President of the Sialkot Chamber of Commerce and Industry, Mr. Ikram ul Haq, has voiced strong objections to the recent introduction of the Infrastructure Development Cess (IDC) by the provincial governments of Khyber Pakhtunkhwa and Balochistan, urging for an immediate exemption for the export sector.

According to Sialkot Chamber of Commerce and Industry, Mr. Haq described the additional taxation as a significant impediment to the export industry, which is a vital component of the national economy. The Government of Khyber Pakhtunkhwa has implemented a 2% levy on both import and export consignments, while Balochistan’s government is enforcing a charge of 1.15% plus one paisa per kilometer on all consignments. These measures have escalated production costs and reduced the competitiveness of Pakistani exporters in the international market.

Mr. Haq argued that these taxes are unsustainable, especially as exporters in Sialkot, who annually contribute approximately USD 2.5 billion to Pakistan’s economy, face increased challenges due to these levies. He also highlighted that these provincial taxes result in double taxation, considering that exporters already pay toll taxes to the National Highway Authority for goods transportation.

The President of the Sialkot Chamber urged the Chief Ministers of Khyber Pakhtunkhwa and Balochistan to reconsider these charges and to provide relief to the export sector by fully exempting it from the IDC. He also appealed to the Prime Minister to address this issue in the Council of Common Interests and to initiate a uniform policy across all provinces to exempt the export sector from such levies.

Mr. Haq emphasized the urgency of these actions to alleviate the financial burden on exporters and to safeguard Pakistan’s standing in global trade markets.