Exports of the country, particularly the textile sector is under great stress due to internal and external pressures. This was observed in the meeting of Zonal committee of Pakistan Hosiery Manufacturers Association (PHMA) held here on Saturday.
The meeting was of the view that while the governments all over the world, are making efforts to provide maximum relief to their foreign exchange earning hands through different ways and means, but in Pakistan, this vital sector is being further tightened.
It said one-percent flat rate of income tax on exports was being charged as final discharge of liability, but in the present budget speech, it had been declared as "minimum" liability, which would be another set of troubles for the exporters.
Speaking on the occasion, PHMA Chairman Zia-ur-Rehman Chaudhry said that exporters would be forced to go into the hands of corrupt elements of tax collecting bureaucracy. He said the exporters had to work day and night to keep the wheel of their industry moving and any attempt to diversify their attention and effort would lead to further decline in exports. "One percent income tax on the turn-over is not small amount as the real taxable income of exporters is very marginal," he added.
The meeting resolved to express strong protest over this unilateral announcement, which had been made without proper and detailed working of the cost of doing business in Pakistan and the actual margin that the exporters were earning. It also observed that internal and external pressures on the exports were already forcing the exporters out of the ring and in such a situation, further tightening of screws on exporters was nothing but to deprive them of their right to survive.
"We have been fighting the battle of our survival and demanding since very long for a fair level playing field, which is being denied. "We demand that this proposed amendment to the Income Tax Ordinance may be withdrawn immediately. We also demand that members of parliament, whom the people of Pakistan have elected to safeguard the interests of the country, should look into the implications of such legislation, which will be counter productive for the economy," the meeting said.
Zia-ur-Rehman further said that a large number of workforce was employed by the export sector, which, if hurt, would pose deep negative impact on employment situation in the country.
"Therefore, the stake holders should be consulted and detailed workings should be carried out before reaching any decision, he said. Speaking next, PHMA Vice-Chairman Adil Butt said that generating income from overseas markets was a tedious business and if advance tax levied on such income would be disastrous for the exports of the country.