Karachi (Commerce Reporter): The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the North Karachi Association of Trade & Industry (NKATI) have welcomed the government’s decision to abolish the Export Development Surcharge (EDS) and demanded that the amount collected under EDS be used for the betterment of small exporters.
FPCCI Senior Vice President Saqib Fayaz Magoon said that this is a very good step, which was a long-standing demand of the business community including the Federation. All taxes that increase the cost of exports should be abolished, and among them, the elimination of EDS was also a demand that has now been fulfilled. He said the government’s job is to promote exports, and it should focus on export promotion. Exhibitions for small exporters, which used to be organized through TDAP, should be held again.
He said that the government has a fund of over Rs. 40 billion, which can be utilized in two ways: if this fund is invested in a bank, the profit earned can be reinvested, with 15% added back into the fund and the remaining profit spent on export development programs.
NKATI President Faisal Moiz Khan said that the abolition of the Export Development Surcharge is a welcome measure. The government should use the funds collected under this head for the betterment of the industry. Around Rs. 50 billion collected through this surcharge should be spent on improving the infrastructure of Karachi’s seven industrial zones so that export-oriented industries can enhance exports.
He said that the utilization of these funds should be done in consultation with stakeholders and with their inclusion in the committee. There is a need to improve the deteriorating infrastructure of industrial areas, while the development of Small and Medium Enterprises (SMEs) should be the government’s top priority.
