SIALKOT: Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) has expressed concern over the proposed plan of the Federal Board of Revenue (FBR) to increase sales tax on five export-oriented sectors from two percent to five percent.
Addressing a meeting of the sports goods manufacturers and exporters, PSGMEA Chairman Rana Naseer Ahmed stated that the proposed levy of 5 percent sales tax on the exports of textile, surgical, carpet, sports and leather sectors will have negative impact on the exports. This would add to the woes of the exporters and the export-oriented industries.
PSGMEA Senior Vice Chairman Ibrar Yaqub Sheikh, Vice Chairman Chaudhry Muhammad Arshad and General Secretary Mohsin Masud were also present on the occasion.
He further said that the proposed increase in sales tax would slash the exports and would not be acceptable.
The PSGMEA chairman said that these decisions should not be taken in haste, government should take business community on board. He added that the export sector is already burdened with high power and gas tariffs, which have made it very hard and difficult for the Sialkot exporters to compete in the international markets. This increase of sales tax would further enhance the grievances of SME’s.
PSGMEA Chairman added that on the one hand government encourages the export industry to boost foreign exchange earnings but on the other hand such measures are taking which would not only affect the efficiency but also let down the morale of business community. He advised government to make business friendly policies, so that the business community can focus on the increase of exports which would ultimately result in the progress of the country, he concluded.
