Too many subsidiaries

The government supports the industrial sector by offering it various subsidiaries. For example, both sugar and textile industries are getting zero tax on utilities and imports. The sugar industry gets the subsidiary of Rs5 billion each year only for export while the textile industry gets zero-rated imports. However, it is unfortunate that some profiteers are taking undue advantage of the benefits that are provided by the government. For instance, it was recently reported that around 200 fake textile importers in Karachi imported more than Rs90 million worth of textile in one year. Without paying taxes, the fake companies disappeared.

The government should instead utilise the subsidiaries in generating business orders for the industrial sector. It should use the sugar export subsidiary to buy sugar for distribution to poor families. It can use textile subsidiaries to buy free school uniforms for children. Wheat stock can be used to produce nutritional biscuits that can be used for school children or poor patients. By providing business to industries, the government can get more benefits for its subsidiary amount as it provides work across an entire supply chain.

Shahryar Khan Baseer

Peshawar