Cargo service providers announce strike

KARACHI: Representatives of Pakistan Freight Forwarders Association (PIFFA) and Air Cargo Agents Association of Pakistan (ACAAP) on Tuesdays protested against the government for imposing 8% turnover tax on service providers and announced an undefined period of protest by suspending export services with effect from 1st September 2015.

Addressing a press conference at Karachi Press Club ACAAP Chairman Farrukh Iqbal announced that due to imposing 8% excessive increase in levy of minimum tax on turnover of service providers, they were compelled to close down their business with effective from September 1st 2015. The tax is imposed retrospectively from 2009 which the industry is unable to bear and sustain.

He said since July, they had held several meetings with Chairman and officials of Federal Board of Revenue (FBR) but the authorities, while knowing the fact that this tax increase is a mistake on their part, are unwilling to make correction.

Iqbal said they would not carry out any commercial activity until the government agrees to revoke the unjust 8% tax from service providers. He said closure of business will almost bring trade of the country to standstill which effectively impact on the importers that they would not able to obtain any delivery orders of their cargo from sea or airport.

PIFFA Chairman Asim Asad said due to closer of business, they are facing the loss of about 0.13 US million dollars while 0.13million people are connected with their field could be affected. He said their lawyers have lodged two petitions against such action.

They appealed the Prime Minister Mian Mohammad Nawaz Sharif and Finance Minister Ishaq Dar to resolve their issue of increase in tax otherwise they bound to take more extreme decision against what they called unjust tax imposed on them.