The value added apparel export sector has demanded of immediate announcement of zero rating sales tax for five export sectors so that exporters may feel confident to enter into contracts with foreign buyers keeping in view their cash flow accordingly.
This demand was made by the Chairman Pakistan Hosiery Manufacturers and Exporter Association Dr Khurram Tariq and Chairman Pakistan Knitwear and Sweaters Exporters Association in a joint statement Shahzad Azam Khan. They have apprehend that the sales tax zero rating for exports as committed by M. Ishaq Dar Finance Minister and Haroon Akhter Khan Advisor to Prime Minister is being jeopardised by backing out from commitments. In the meeting with stakeholders, it was decided that these sectors will be declared truly zero rated not only for raw materials (except packing materials) but also for all input components like coal, furnace oil, diesel, gas and electricity.
Shahzad said that government seems to be backing out from their commitment and as such exporters are feeling reluctant to make export commitments with their overseas buyers. In order to clear the uncertainty, the government should immediately issue SRO in this regard.
Dr Khurram was of the view that non fulfilment of commitment by government will result in loss of its credibility and business circles will no more believe in their polices. He stressed that only long term polices can maintain momentum of export business otherwise Pakistan will be labelled in the world market as a non-reliable supplier. He therefore urged that required SRO may be issued without loss of time.