Goods Transporters of Pakistan demand reversal of the tax increase in budget

In a press conference today, the Goods Transporters of Pakistan made a passionate appeal to the media and government officials regarding a recent decision to increase the withholding tax on logistics services from 4% to 6%. The transport sector, which plays a crucial role in the nation’s economy, is already struggling, and this tax hike could further jeopardize its survival.

Rana Asim Shakoor, spokesperson for the Fleet Operators Association of Pakistan, emphasized the potential impact of this tax increase on small and medium-sized transporters. “This decision threatens to push many transport businesses out of the formal tax net, leading to increased corruption and undermining government revenue collection,” he stated.

The association noted that the logistics and transport sector accounts for approximately 12.5% of Pakistan’s GDP. They expressed their willingness to pay fair taxes but condemned the proposed increase as excessive and crippling. In addition to tax burdens, the industry faces frequent toll tax hikes and new toll plazas without justification, further stressing transport operators.

The Goods Transporters of Pakistan made two main demands to the government: 1. **Immediate Withdrawal**: They called for the immediate withdrawal of the proposed 2% increase in withholding tax on logistics services. 2. **Retain Current Rate**: They urged the government to maintain the existing 4% tax rate to ensure a sustainable operating environment for transporters. The transport sector serves as the backbone of Pakistan’s economy, affecting the availability of essential goods across the nation.

Representatives from various transport associations, including the Karachi Goods Carrier Association and the Sindh Goods Truck Trailer Owners Association, emphasised the importance of an efficient transport system for the overall stability of the economy. The Goods Transporters of Pakistan urged members of the media to amplify their message and advocate for a solution that serves the national interest, ensuring the survival of this vital industry.