Korangi Association of Trade and Industry opposes proposed withdrawal of sales tax zero-rating from export items
Karachi, December 18, 2012 (PPI-OT): Trade and industry has strongly opposed the plan of the Federal Board of Revenue to withdraw sales tax zero-rating from certain export items on the excuse of generating more revenue Patron In-Chief Korangi Association of Trade and Industry (KATI) S M Muneer, Chairman Mohammad Zubair Chhaya President All Karachi Industrial Alliance, Mian Zahid Hussain and Vice Chairmen Najmul Arfeen and Niaz Ahmed said in a statement that decision of withdrawal of any incentive on export sector would adversely affect exports at a time when huge amount of sales tax refunds are already stuck up with the FBR and exporters are facing liquidity crunch.
“Instead of pacifying the exports sector at this juncture when the industries are closing down and massive unemployment is haunting the nation, the government is further trying to squeeze business community”, Zubair Chhaya said adding that it’s high time to reverse the anti-export and anti-industry policies by the government and refrain from any adverse action.
The government may study export policies of India, China, and Bangladesh where exporters are facilitated through export friendly policies, he said and added the FBR should announce export friendly policies instead of creating difficulties for the industry, he advised.
This huge trade gap has resulted into inflation and devaluation of Pak Rupee. If zero-rating from five sectors i.e. textile, leather, carpets, sports and surgical is withdrawn, it will adversely affect our exports,” he said.
He agreed to the stance by leather sector which gave an example of leather sector in South Asia where China, India and Bangladesh recorded growth rate of 47 percent, 40 percent, and 71 percent, respectively in last five years whereas in Pakistan exports of leather sector declined by 14 per cent due to various reasons.
For more information, contact:
Korangi Association of Trade and Industry (KATI)
ST-4/2, Sector 23, Korangi Industrial Area,
Tel: +9221 3506 1211 -2
Cell: +92346 2012346
Fax: +9221 3506 1215