Khyber Pakhtunkhwa yet to avail PM’s relief incentives

PESHAWAR: Khyber Pakhtun-khwa could not avail the incentives, announced by Prime Minister Yusuf Raza Gilani in January for the revival of the economy of the militancy-hit province, because of the delaying tactics of the government departments and financial institutions.

The business community of the province has lamented the lethargy of the government functionaries and said that most of the incentives announced by the premier, as part of his relief package on January 7 would lapse next month.

The traders and businessmen whose businesses were badly damaged by terror incidents during 2009 would be thus unable to avail the incentives. Riaz Arshad, president of the Sarhad Chamber of Commerce and Industry (SCCI), told The News that the delaying tactics adopted by the government and banks had rendered the entire relief package useless. He said the business community of the province held numerous meetings with the concerned quarters to expedite implementation of the incentives but to no avail.

Riaz Arshad said the package was revised at the request of the business community and trade circles, but they were still confused about the incentives offered in the revised package. The SCCI chief said major part of the prime minister’s package related to the State Bank of Pakistan and Federal Board of Revenue (FBR), but they didn’t issue any proper SRO or notification.

“The notifications and SROs that were issued are ambiguous, but none of the government and banking sector institutions came out with any clarification,” he argued. He said that notifications issued about the reduction of mark-up rate to 7.5 per cent and credit guarantee scheme could not be implemented and traders continued to pay full mark-up and were still waiting for waiver on their loans.

The SCCI chief said the prime minister had issued clear directives on February 6, asking the State Bank of Pakistan, ministries of Finance, Water & Power, Commerce and Petroleum and Natural Resources, Federal Board of Revenue and the provincial government to ensure all steps necessary for the implementation of the package.

Riaz Arshad added that tax payers from the worst-hit or severely affected areas were given the waiver facility on taxes including Customs Duty, Sales Tax, Federal Excise Duty and Income Tax, Withholding Tax and Wealth Income Tax on the exports till June 30, but the ambiguous notifications and SROs deprived the people of the affected areas to avail the facility. The SCCI chief said that the Sales Tax exemption facility would also lapse on June 30 as it would not remain applicable after the introduction of Value Added Tax from July 1.