Islamabad
The Chain stores in the country, while opposing the government’s decision of early closure of markets, has proposed the alternative measures to ensure balanced energy conservation, as the reduction in retail peak hours will reduce revenue by 30%, resulting in sale loss of Rs3.5 trillion, besides total GST and Income Tax collection loss of about Rs300 billion against electric saving of less than Rs62 billion annually.
In a letter, written simultaneously to Federal Minister for Energy & Power Muhammad Ali, Federal Commerce Minister Gohar Ijaz and Provincial Industries Minister S.M Tanveer, Chairman of the Chainstore Association of Pakistan (CAP) Tariq Mehboob Rana stated that recently announced decision by the government is based on an unfounded claim of annual savings of Rs62 billion. Rather, this measure will counterproductively cause a significant plunge in revenues of up to 30 percent for retail businesses of which ‘Tier-1 retailers’ are connected with the FBR-POS system. Such a sharp dip in sales will amount to several hundred billion of rupees of national economic loss across the domestic economy and a proportionate drop in tax collection, while indirect impact to domestic economy is estimated to be much larger. We request a review of the facts and our proposals before making a final decision regarding timings of retail activity. Moreover, it is proposed that a committee be formed with representatives from all stakeholders, including the Provincial Department of Energy, APTMA, and CAP, to examine the issue from all perspectives and reach a truly balance solution.
