KARACHI: All-Pakistan Bedsheets and Upholstery Manufacturers Association (APBUMA) has expressed concern over the proposed increase in sales tax on exports from two to five percent, saying that increase in the rate of sales tax will affect the country’s fragile exports adversely and leave a negative impacts on value-added sector.
According to APBUMA Senior Vice Chairman Khawaja Muhammad Mehr Ali and former chairman Syed Muhammad Aasim Shah, the increase, if made, in the rate of sales tax would leave the country’s exports uncompetitive.
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They pointed out that increase in the prices of raw material coupled with ever-rising tariff of electricity and gas had already increased the cost of doing business, adding that increase in the rate of sales tax on exports would drive the final nail in the coffin of exports.
They stressed that under the prevailing scenario, it was essential to abolish sales tax on export-oriented sectors as it would help to increase revenue.
They appealed to the government to keep in mind difficulties of exporting units, especially value-added sector and withdraw the decision regarding increase in the sales tax rate on exports. They also pointed out that there was need for introducing “No payment no refund” system.
