KARACHI: The garments exporters have demanded the government to grant zero-rating status to five export-oriented sectors to boost trade.
Pakistan Apparel Forum (PAF) Chairman Jawed Bilwani, in a statement, said the government is not fulfilling its promise of granting the sales tax zero rating to five export sectors. Bilwani said the exports declined 12.92 percent to $15.606 billion in the first nine months of the current fiscal year while the exports of regional competitors increased.
“The decision not to grant zero rating to the five export sectors shall be tantamount to crippling and ruining the export sectors amid stiff competition from regional competing countries,” he said.
The industry was always facing troubles due to huge liquidity outstanding in sales tax refund, customs rebate and drawback on local taxes and levies claims. “Despite tall claims of releasing held-up sales tax refund claims of exporters, only few payments below Rs5 million against those refund payment orders (RPOs) issued till August, 2015, were paid to favoured businessmen,” he said.
“For exporters with claims of over Rs5 million, initially they were promised payments in the form bonds and later payments in cheque but it is surprising no payments had been made to them as yet despite the fact that RPOs against the same were issued 19- month back.”
