Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) has submitted the proposals and suggestions for annual budget and trade policy for the fiscal year of 2004-2005.
According to the proposal PSGMEA suggested that SRO 410(1) 2001 should not be abolished rather it should be continued. It is absolutely not an incentive but a facility for the import of raw materials that are not available in the country.
If this facility is withdrawn the export will be dropped to 30 to 40 percent while effect the percentage of employment.
The PSGMEA said that methods and polices of the countries those who with meagre sources of raw materials allowed their exporters to import raw materials under such of type of facilities that exporters can have the benefits of 25 percent of the consumption of raw material at their own disposal.
If the government provides this facility to the exporters the exchequer may loose $ 100 million on account of levies etc, but on the other hand it may get $ 500 due to increase the exports.
This is the only system through which two major issues of the country can be resolved such as Gross Domestic Production and apprehended figure of our export of $12 billion.
All levies and taxes may be exempted on any machinery imported for the purpose of manufacturing for export-oriented industry. It is noted that government had already decided to bring at par the prices of export-oriented raw materials.
Moreover, the Sales Tax should be reduced from 20 percent to 5 percent to give relief to the export-oriented industry of footballs. A large number cases are lying pending with the Ministry of Industries for the reimbursement of ISO-9000 certificates due to unknown reasons. Arrangements should be made speedy payments to the concerned firms without further delay.
The Sales Tax is being charged on zero rated samples which is absolutely against the ethics of business norms as internationally the countries introduced Sales Tax charges against the sale of products but on free samples which are not for sale.
The foreign customers send their labels, tags, price stickers etc for their ordered products, which are subjected to heavy Custom Duties, Sales Tax etc. Whereas these stickers, tags etc have no commercial values and have no saleable in markets of Pakistan as well.
The stickers, tags, price tickets etc that are to be used in the production of orders may be exempted from any sort of duty and no bank guarantee should be involved.
The procedure of Sales Tax should be made more simplified because current procedure was creating complications for the business community. The sanctioning authority of Sales Tax Refund is already in Sialkot but the treasury office functioning in Gujranwala as a result of which exporter community is facing multifarious problems.
Keeping in view the problems treasury office should be ensured at Sialkot to facilitate the exporters. The government should announce considerable reduction in telephone call charges, sui gas and electricity charges in order to boost economic activities in the country.
Pakistan International Airline (PIA) may also be directed to reduce cargo tariff.
The government should introduce incentives for the investors for export-oriented industry on the patron of England and contributes 20 percent cash of the total investment as an incentive to promote industrial development that ultimately increases GDP and creates employment opportunities.