Pakistan Readymade Garments Manufacturers and Exporters Association condemn recent exorbitant increase in shares of contribution by Employees Old Age Benefit Institution
Karachi, March 31, 2016 (PPI-OT):Arshad Aziz, Acting Chairman (South Zone) Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) in a statement he has strongly criticized and condemned the recent exorbitant increase in the shares of contribution by EOBI.
It is injustice that the EOBI has suddenly increased the EOBI shares of contribution with effect from 1st July 2012 to 1st July 2015. The minimum wage for Unskilled Workers Ordinance 1969 has been amended by the Minimum Wage for Unskilled Workers Amendment Act 2016 which is applicable only to Islamabad Capital Territory. A peculiar feature of this Act is that the law has been given retrospective effect from 2012.
The textile industry that is the backbone of the country and job-creating sector is already suffering due to stuck of billion of rupees with the government on account of Sales Tax, duty drawbacks and drawbacks on local taxes and levies (DLTL), moreover, exports are decreasing fast day by day and units are closing, in this critical situation, EOBI notification with a liability of 4 years would tantamount the industry to jeopardize, he added.
He said that in the prevailing situation and financial crises, the decision would not only hamper the business activities and due to prevailing economic recession shall increase financial crises particularly to the business community. He demanded to the concerned authority to withdrawal of increase immediately otherwise exporters would resort to knocking the door of high court for stay-order, he warned.
For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan