SIALKOT: Sialkot Chamber of Commerce and Industry (SCCI) has expressed grave concern over the levy of 6 percent Sales Tax and 2 percent Value Addition Tax on the commercial import of fabric under SRO 584(I)/2017 from July 01,2017.
In a press release issued here, the SCCI President Majid Raza Bhutta said that exports were already declining due to various factors and Government was implementing taxes on inputs and raw materials instead of providing relief to the export industry.
SCCI President added that charging 6% Sales Tax and 2% Value Addition Tax from commercial importers would ultimately add to the Product Cost and export competitiveness of Pakistan-made products would be lost.
SCCI President Majid Raza Bhutta said that Zero Rating on Five Export Oriented Sectors should also be implemented in true letter and spirit.
He expressed grave concern over the charging of the sales tax from the commercial importers , would neither be adjustable nor refundable, saying that impact of tax would have to be borne by the exporters as well.
“The exporters quote their prices to foreign customers on the basis of prevailing tax regime and such changes in the tax system would leave them helpless in completion of their booked export orders”, he added.
SCCI President emphasized that Government should immediately intervene into the matter and issue instructions to Federal Board of Revenue (FBR)to withdraw SRO 584(I)/2017 dated July 1, 2017, to provide relief to the value added textile export industry. He said that urgent immediate action could help save the export industry.
