Chairman Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) Professor Safdar Sandal has demanded that Sialkot Export Processing Zone should be de-notified.
Talking to newsmen here on Wednesday, he added that after the lapse of about 20 years only two units had been established which were being run on a very limited scale and these units had reflected their lack of interest to continue their units in SEPZ.
Moreover, a lot of documentation is required for the movement of raw materials in and out of EPZ, he added. Professor Sandal said that Sports Goods Industry had a very large vender base especially in soccer balls where all manufacturing system is out sourced through middlemen in villages, documentation and levies of taxes and duties in case of pilferage were the major impediments hampering exporters in setting up their factories in Sialkot Export Processing Zone.
The government had already reduced import duties to a very low point and had also allowed duty free import of machinery and raw materials to major export-oriented industries so there is no need of EPZ any more, he said. The Sports Goods Association in its special meeting of Executive Committee has resolved that the government should de-notify the SEPZ, he revealed.
Professor Sandal said in view of the facts and save the investment of the exporters it is utmost desired that SEPZ should be de-notified immediately and this area should be converted into industrial estate so that exporters may build their industrial units area.
After de-notification the allottees would set up their units immediately he said confidently. The chairman also demanded the exemption of 1 percent withholding tax from banks being charged at present which was originally 0.25 percent, one window operation should be started at fixed rate for all fringe benefits.
Thus, heavy workers fringe benefits cost like social security and EOB/contribution group insurance etc should be done away with, the export development fund 0.25 percent presently being charged from exporters should be reduced to 0.1 percent for a five year period and 0.02 percent service charge on bank cheques is another financial burden on exporters should be eliminated.