Value added sector demands zero rating sales tax
LAHORE—The value added apparel export sector has demanded of immediate announcement of zero rating sales tax for five export sectors so that exporters may feel confident to enter into contracts with foreign buyers keeping in view their cash flow accordingly. The demand was made by the Chairman Pakistan Hosiery Manufacturers and Exporter Association Dr. Khurram Tariq and Chairman Pakistan Knitwear and Sweaters Exporters Association Shahzad Azam Khan.
They have apprehend that the sales tax zero rating for exports as committed by Mr. Ishaq Dar Finance Minister and Haroon Akhtar Khan Advisor to Prime Minister is being jeopardized by backing out from commitments. In the meeting with stakeholders, it was decided that these sectors will be declared truly zero rated not only for raw materials (except packing materials) but also for all input components like coal, furnace oil, diesel, gas and electricity. Dr. Khurram was of the view that non fulfillment of commitment by government will result in loss of its credibility and business circles will no more believe in their polices.