FPCCI calls for withdrawal of 0.9% infrastructure cess

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has asked the Punjab government to immediately withdraw the 0.9% Punjab Infrastructure Development Cess (PIDC) imposed in the province, according to a statement issued on Monday.

FPCCI President Atif Ikram Sheikh said the levy should be removed without delay. He said eight dry ports in Punjab have become largely non-operational, and argued that reviving them and shifting customs clearance from Karachi to Punjab would lower business expenses and generate employment opportunities.

According to the statement, Sheikh said that if the dry ports were restored and customs procedures were handled in Punjab instead of Karachi, it would significantly cut the cost of doing business while also opening up new job opportunities.

Business community raises cost concerns

FPCCI Regional Chairman Zaki Aijaz said transporting cargo by rail is far more economical, adding that demurrage costs could also be reduced considerably under such an arrangement.

He said business costs increase substantially when customs clearance is carried out in Sindh. Aijaz added that importers have to pay demurrage charges ranging from $100 to $200 per day in foreign exchange, which, he said, ultimately benefits multinational companies.

The statement said the business community believes that moving customs clearance closer to Punjab’s dry ports would help reduce these additional expenses and improve operational efficiency for traders and importers.

Call extended to other provinces

Besides urging Punjab to withdraw the cess, the business community also appealed to the governments of Khyber-Pakhtunkhwa and Balochistan to abolish the infrastructure development cess imposed in their provinces as well.

The demand was made as part of a broader call by business representatives for reducing costs linked to cargo handling, customs clearance and transport. The FPCCI statement presented the issue as one affecting the wider business environment, particularly where traders face added charges due to the location of customs clearance and related logistics.

Sheikh and Aijaz, as cited in the statement, linked the restoration of dry port activity in Punjab with lower transport and clearance costs, especially if rail-based cargo movement is used more extensively. They maintained that the current arrangement increases the financial burden on businesses.

The statement did not provide further details on any response from the provincial governments, but outlined the chamber’s position that the cess should be withdrawn in Punjab and similarly removed in Khyber-Pakhtunkhwa and Balochistan.