20000129

15pc GST on

electricity

opposed

RECORDER REPORT

HYDERABAD: The President Sindh Rice Millers and Traders Association (SRMTA), Gada Hussain Mahisar has rejected levy of the General Sales Tax (GST) on electricity and urged Chief Executive, Gen. Pervez Musharraf, to order withdrawal of the decision.

In a statement he termed it is unjustified and argued that Wapda was producing and availing of surplus electricity and there was no justification of raising its cost through the GST.

Mahiser said that the imposition of GST would have an adverse effect on the trade and overall interests of the country.

He said that many of the rice millers had turned to oil engines to run their plants because of the cost and frequent power breakdowns. The situation, he added, was hampering the industrial growth.

He regretted that the GST was not only being imposed on commercial consumers but also domestic ones which might lead to resentment among general public.

The President All Pakistan Alliance Kazi Nisar Ahmed has termed the levy of GST as a conspiracy of the bureaucracy and World Bank and said that they were trying to create hatred against the military government.

He said that the government was purchasing power generated from Mangla and Tarbela dam at the rate of 25 paisa per unit, but due to the in-efficiency of previous government that had signed Pacts Independant Power Producers (IPPs), the present government has been forced to levy 15 percent GST of power consumption.

He claimed that according to his formula already submitted to the government, all the international loans could be cleared within 90 days.