desan
President (40k+ posts)
PESHAWAR: Pakistani businessmen in Khyber Pakhtunkhwa province dealing in cattle hides want the federal government to bring their competitors belonging to Afghanistan under the income tax net to ensure a level playing field.
The businessmen say their survival was becoming difficult because their cost of doing the business was increasing while their competitors from Afghanistan did not have to pay even income tax.
“We are facing double jeopardy,” said Asim Mahmood, a local businessman who supplies rawhides to tanneries in Punjab and Karachi. Local rawhide dealers have been complaining for quite some time about Afghans taking over the rawhide business. Several of Peshawar’s native businessmen have left the business during the past few years.
Local businessmen say those who disinvested their businesses ran out of competition as a result of factors of which Afghans’ involvement in the trade is hugely responsible. According to Mahmood, Afghans have already taken 30 per cent of the market share in Peshawar.
Giving reasons for Afghan businessmen’s success, he said they were running the businesses without registration under the income tax law, they had apparently no investment issues, and their cost of doing business was lesser than the local businesses’ expenditure.
“In some cases, they have grouped together and pooled money to invest, even without employing a regular workforce,” said Tajjamal Khan, who owns a rawhide business at Peshawar’s Afridi Garhi market.
He said that some of the Afghan businessmen had the ease of bringing in investment in dollars from their country.
American dollar, he added, was commonly exchanged in Afghanistan whereas Afghani (the Afghan currency) was also stronger than the Pakistani rupee. Local businessmen said since some of the Afghan businessmen had greater investment at hand than others they could afford to supply rawhides to tanneries in Punjab on longer credit commitments.
Mahmood said that he could absorb the pressure for two to three months to get repaid by tanneries against his supplies.
“Some of the Afghan businesses supply hides for a period longer than the prevalent market trend, which make them preferable for the clients in Lahore and Karachi,” added the businessman from Cinema Road,
Peshawar.
http://thepeninsulaqatar.com/pakist...ll-to-bring-afghan-traders-under-tax-net.html
The businessmen say their survival was becoming difficult because their cost of doing the business was increasing while their competitors from Afghanistan did not have to pay even income tax.
“We are facing double jeopardy,” said Asim Mahmood, a local businessman who supplies rawhides to tanneries in Punjab and Karachi. Local rawhide dealers have been complaining for quite some time about Afghans taking over the rawhide business. Several of Peshawar’s native businessmen have left the business during the past few years.
Local businessmen say those who disinvested their businesses ran out of competition as a result of factors of which Afghans’ involvement in the trade is hugely responsible. According to Mahmood, Afghans have already taken 30 per cent of the market share in Peshawar.
Giving reasons for Afghan businessmen’s success, he said they were running the businesses without registration under the income tax law, they had apparently no investment issues, and their cost of doing business was lesser than the local businesses’ expenditure.
“In some cases, they have grouped together and pooled money to invest, even without employing a regular workforce,” said Tajjamal Khan, who owns a rawhide business at Peshawar’s Afridi Garhi market.
He said that some of the Afghan businessmen had the ease of bringing in investment in dollars from their country.
American dollar, he added, was commonly exchanged in Afghanistan whereas Afghani (the Afghan currency) was also stronger than the Pakistani rupee. Local businessmen said since some of the Afghan businessmen had greater investment at hand than others they could afford to supply rawhides to tanneries in Punjab on longer credit commitments.
Mahmood said that he could absorb the pressure for two to three months to get repaid by tanneries against his supplies.
“Some of the Afghan businesses supply hides for a period longer than the prevalent market trend, which make them preferable for the clients in Lahore and Karachi,” added the businessman from Cinema Road,
Peshawar.
http://thepeninsulaqatar.com/pakist...ll-to-bring-afghan-traders-under-tax-net.html
