Call not to end zero-rated regime for 5 export sectors
KARACH: The leaders of the five zero rated export sectors (value added textile, sports, surgical and leather goods and carpets) on Monday appealed to Prime Minister Imran Khan to intervene for continuity of zero-rating of sales tax scheme in the national interest to promote exports of the country.
“Discontinuation of zero rated status will damage the export oriented
industries, will cause flight of capital, unemployment and huge foreign exchange losses,” the Chairmen of the five sectors said during a joint press conference held at Karachi Press Conference.
Prominent among them were Chairman, Council of All Pakistan Textile
Associations, Muhammad Zubair Motiwala; Central Chairman of Pakistan Apparel Forum, Muhammad Jawed Bilwani, Patron-in-Chief, Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) Fawad Hassan, Chairman PLGMEA-South Zone, Syed Shujat Ali, Chairman, Carpets Manufacturers and Exporters, Naeem Sajid, Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association, Sheikh Rafiq and Chairman, SITE Association of Industry, M.Saleem Parekh.
The business leaders, expressing their concern, categorically
rejected the proposed new tax regime to discontinue zero rating whereby exporters liquidity will stuck up like in the past.
No successive governments had kept their promises and cleared the backlog of exporters refund claims of billions of rupees in terms of sales tax, withholding tax etc. That, they would withdraw from their principal demand for continuity of zero rating status to the five export-oriented sectors.
More than 80 percent products of these sectors were being exported, they
Discontinuation will also lead to corruption and fake/flying invoices,
over invoicing, frauds in refunds etc. Further, they maintained, due to significant volumes of liquidity being stuck in the form of sales tax refunds, export growth will be severely affected.
The leaders of these five zero-rated sectors said they will announce
their future strategy on this issue after announcement of the annual budget 2019-20 by the Federal Government.