KARACHI: Scores of value-added textile associations Wednesday termed the 10 percent supertax “harsh and destructive” for the export-oriented sector, demanding of the federal government to withdraw it immediately.
The associations said that the supertax is an addition to all multiple taxations levied on the export sector, calling it “highly disastrous” for the sector, which has performed actively in the economic turmoil in the country’s history.
In a joint statement, they demanded of the government to withdraw the super-tax at once in the “interest” of national economy, worrying that the imposition will have a “destructive” impact on the very export sector.
The Imposition will push the exports to doldrums, they warned, saying that it will waste the “hard” efforts of the exporters and “sabotage” value-added textile export.
Withdrawal of 10pc supertax on 13 sectors demanded
“Otherwise, the sitting government shall be completely responsible for the expected destructive impact on the export sector, which may lead to complete closures and lay-offs heading towards massive unemployment and law and order situation,” they said.
The value-added textile sector have outperformed others and achieved a milestone with a historic export growth and foreign exchange earnings last fiscal year, they said.
The textile sector has performed beyond “excellence” with $19.4 billion of exports up by 26 percent, or $4 billion, standing out with its contributing to the total national exports of approximately $31.76 billion.
The 26 percent growth in value-added textile exports amounting to the increase of equal percentage in jobs, besides revenues and taxes. The associations saw the super-tax on the textile sector as a “punishment” by the government for its growth of $4 billion.
Copyright Business Recorder, 2022
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