LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) and the Pakistan Goods Transporters Association have jointly urged the federal government to withdraw the increase in withholding tax on logistic services and address other critical issues confronting the transport sector without delay.

Addressing a joint press conference on Wednesday, LCCI President Mian Abuzar Shad termed the increase in withholding tax on logistic services from four to six percent as a harsh and unjustified blow to the already struggling goods transport sector.

He said that such move could push the sector to the brink of collapse and demanded the government to immediately reversethe decision and reinstate the previous rate of four percent.

He said the only general truck stand in Lahore, located on Ravi Link Road, was insufficient due to the city`s expanding population and commercial activity. He urged the Punjab government to allocate land outside the city limits to establish a modern and international-standard truck terminal.

He said this would facilitate the relocation of goods forwarding agencies out of urban areas.

This move would help reduce traffic congestion, lower environmental pollution and improve logistic efficiency, he added.

The association`s office bearers strongly criticised the increase in toll taxes every two months by the government, describing it as unbearable for transporters. They described the establishment of new toll plazasat various locations as unjustified extortion and said that this was impacting the sustainability of the transportbusiness.

They also condemned the `unwarranted fines and harassment` by the traffic police under the guise of document checks.

They argued this not only demoralises drivers but also negatively affect operations and their reputation. They said that transporters were being penalised for minor issues.

They said the national economy was already under pressure and if immediate steps were not taken, transporters would be left with no option but to shut down their operations, for which the government would be solely responsible.

Participants of the press conference jointly called on the government to provide urgent relief to the transport industry and ensure its survival.