The export manufacturer’s bodies of Pakistan many based in Sialkot, have urged the government of Pakistan to continue the zero-rating sales tax regime in the budget 2019-20, country’s export might drop further to $21 billion from $23.7 billion now.
Such step would have a harmful effect on the policy to generate 10,000,000 jobs, they feel. The valuable exporter bodies of textiles, leather, carpets, and surgical instruments and sports goods had an emergency meeting to resolve the issue hosted by the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).
PRGMEA chief coordinator, Ijaz Khokhar said, Pakistan’s textile exports have already seen a flat growth at $11.1 billion in the first 10 month of the current revenue. The sharer decided to have a meeting with the prime minister, to notify him that if this building is implemented than, the businesses may collapse.
Khokar further added, the zero rating regime was cancelled twice in the past due to the sales tax refund issues. He wondered with the finance ministry action as it was considered for the third time. They already knew the refunds of Rs 200 billion were already in pending over the last few years. Federal Board of Revenue’s (FBR) simply want to end the incentive to make its balance sheet correct, he added.