ISLAMABAD -- The Federal Board of Revenue has set up a directorate general for export-oriented sectors after it withdrew the zero-rated
facility to five major sectors - textile, leather, carpets, sports goods and surgical instruments and restored sales tax at the standard 17% on them.
KARACHI -- President Karachi Chamber of Commerce and Industry (KCCI) Junaid Esmail Makda has expressed deep concerns over the worsening crises being faced by the industries across Pakistan after the withdrawal of zero-rated
regime which has created a disastrous situation for the export-oriented industries and it was a matter of grave concerns that many industries, particularly the textile units and its allied industries have shut down their activities, rendering thousands of people completely jobless.
The withdrawal of zero-rated
facility will push these sectors towards a disaster," he added.
'Textiles, leather, carpets, surgical instruments and sports goods as major part of exports is associated with these sectors', they said and added that five-zero rating sectors are documented and contributing around 70% of total exports and 50% in employment', the LCCI president said and added that withdrawal of zero-rated
facility will push these sectors towards a disaster which can easily be averted
In a major setback to the flagship initiative to increase exports of the country, the government has decided to take back the energy package (RLNG at $6.5 per MMBTU, and electricity at 7.5 cents per unit) earlier extended to zero-rated
sector till June 30, 2019.
After listening to the representatives of five zero-rated
exports-oriented sectors and the stance of commerce ministry, Naveed Qamar advised Advisor to Prime Minister on Commerce and Textile, Razzak Dawood to find some middle ground that would be beneficial for both government and Industry.
Despite this development, the government is not ready to concede to the demands of the five zero-rated
sectors to provide them complete relief by restoring SRO 1125 and withdrawing the imposition of 17percent sales tax announced in the federal budget for fiscal year 2019-20.
The government has withdrawn the zero-rated
regime for five sectors - textile, leather, carpets, sports and surgical goods - and imposed a standard sales tax rate of 17pc on all items.
KARACHI -- Leaders of five export-oriented industries on Saturday demanded immediate restoration of zero-rated
facility under SRO 1125 and withdrawal of 17 per cent sales tax on all exports that was imposed in Budget 2019-20.
DEADLOCK between government and textile exporters over a key budget proposal to abolish zero-rated
status of five exporting industries from next fiscal persisted on Saturday as the former rejected business community's demand for continuation of facility on the grounds that it was being misused to evade payment of taxes on their domestic sales.
So the number of zero-rated
premises is only 1.45 per cent of the total.
The endorsement, together with the certificate of accreditation, is used by the companies as proof of their qualification in the EDA's zero-rated
value-added tax (VAT) incentive.