MULTAN: Former Chairman All Pakistan Bedsheets and Upholstery Manufacturers Association Syed Mohammad Asim Shah showed deep concerns over the end of the zero rated facility from manufacturing sector and expressed that government’s decision would prove destructive for the whole export industry.
He expressed that 17 percent sales tax on 5 export oriented industries including textiles, leather, carpets, surgical instruments and sports goods will discourage new investment in manufacturing sector.
He said that huge number of industrial units will face closure due to imposition of sales taxes and it will also cause unemployment at large scale and this decision will also put extra burden on export under the terms of International Monetary Fund (IMF).
He said that textiles and other industries are already facing financial crisis due to Rs300 billion revenue stuck in the government refunds claims. Current hike in the prices of raw material due to devaluation of dollar has enhanced the cost of business for the exporters.
He showed disappointment over the withdrawal of zero rated facility and said that if government wants to improve the global classification of ease of doing business then it needs to take business friendly policies by eradicating old bureaucratic barriers in the country.
He said that government should boost export sector to overcome ongoing financial challenges and continuation of zero rated export is vital for bringing economic stability in the country.
