LAHORE: The exporters from Sialkot have announced to observe a ‘zero export day’ on Wednesday (May 27) to press the government for release of their outstanding duty drawback claims and sales tax refunds.
The Sialkot exporters will shut down their factories first time in the history to protest against the government policy of practically eliminating their zero-rated status.
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Chairman Ijaz Khokhar said that the association in collaboration with Sialkot Chamber of Commerce and Industry (SCCI) and other trade associations representing the manufacturers and exporters of readymade garments, knitwear, gloves, surgical instruments and sports goods had unanimously decided to observe the ‘zero export day’.
He said the exporters had been dragged into the vicious circle of paying sales tax and later claiming refunds through changes in SRO 1125(I)/2011. Initially, the protesting five export sectors were declared zero-rated under SRO1125(I)/2011, but subsequently the facility of zero rating was gradually withdrawn. He said the exporters would also hold protest demonstrations at the Sialkot dry port and outside the tax offices in the city.
