FBR tax policies responsible for shrinking Footwear Industry
Our Special Reporter
LAHORE: Executive Committee of Pakistan Footwear Manufacturers Association criticized the Federal Board of Revenue (FBR) Tax policies in their board meeting in Lahore.
They believe current Tax structure creates more unemployment as Footwear industry is forced to let go of its highly skilled labor force.
Government is not realizing the seriousness of economic slow down caused by its Taxation policy. Instead of broadening tax net in the country, the government is further squeezing the already tax paying registered industries.
Mr. Hassan Javed, Chairman PFMA said, The trust of industrialist on the current Government is badly shattered which needs to be restored for better economic future of the country. He said, we are unable to understand as to why export friendly SRO 1125 is rescinded in budget, despite a declared objective to increase exports and improve balance of payments. Other countries, that compete with us for exports, always support their industries and provide significant incentives to
manufacturers and exporters.
He rejected the imposition of 17% GST on local footwear. This will affect the buying power of consumers, he added. Because of the tax policy, the size of Footwear industry will further shrink and thousands of workers and artisans of the industry will go jobless. This is counter productive to Governemnt’s stated
objectives of poverty alleviation and job creation in the economy.
We strongly suggest the government to reconsider it’s decision and lower the GST to 7% and do away with draconian regime of 17%. The emphasis should be placed on broadening the tax net, rather than penalizing the law abiding and tax paying segments of the society.
He also demanded that incentive of Zero Rated GST for export-based industries be reconsidered and SRO 1125 be restored to enhance the much needed export of the country.