PESHAWAR  -  The Khyber Pakhtunkhwa government has decided to reduce the 2% cess on exports to 1% following recommendations by the Sarhad Chamber of Commerce and Indus­try (SCCI). A summary reflecting this deci­sion will be presented at the upcoming pro­vincial cabinet meeting for formal approval, disclosed Advisor to Chief Minister for Fi­nance and Inter-Provincial Coordination Muzamil Aslam during a visit to the cham­ber house. 

The meeting was attended by SCCI Vice President Jalil Jan, former presidents Haji Afzal and Faiz Muhammad Faizi, Executive Committee members, and representatives from the Industrialists Association Pesha­war, gemstone traders, carpet exporters, and Pak-Afghan business stakeholders. 

SCCI President Fazal Moqeem voiced con­cerns about the negative impact of the 2% cess on exports, property tax imposed on warehouses, shops, and offices by the Excise and Taxation Department, and the designa­tion of withholding agents by the KP Reve­nue Authority (KPRA). He emphasized that the export process in Khyber Pakhtunkhwa had been severely affected by these meas­ures and warned that continued imposition of the cess could lead to the cessation of ex­ports from the province. 

Moqeem also highlighted the double tax­ation issues due to property tax collec­tion, the professional tax burden on busi­nesses, and the lack of implementation of the provincial industrial policy of 2020. He further pointed out the non-availabil­ity of gas and electricity, which he argued violates Article 158 of the Constitution as Khyber Pakhtunkhwa is a surplus produc­er of these resources. 

Demanding SCCI representation in key bodies like the Labour Department, ESSI, KPRA, KPEZDMC, and the Food Depart­ment, he called for consultations with the chamber on inter-provincial coordination and business-related policies. 

Responding to these concerns, Muzam­il Aslam assured participants that cess rev­enues would be directed toward economic activities and infrastructure development in the province. 

He pledged to address hurdles in provid­ing soft loans through the Bank of Khyber, resolve issues related to KPRA and IPC, and prioritize the business community’s concerns at federal forums. He also em­phasized the need for collaboration with the business community to achieve reve­nue and economic growth targets in the province.