MULTAN City News

Exporters for withdrawal of increase in sales tax

From Our Correspondent

MULTAN: Exporters and export manufacturers Saturday urged the government to withdraw sudden increase in sales tax proposed by the Federal Board of Revenue.

They expressed their concerns and asked authorities concerned to remove the sales tax to boost export and demanded zero-rated tax regime and no payment no refund system for the export-oriented textile industry. They threatened a protest campaign across the country if the payments of pending sales tax refund claims swelled to Rs 450 billion, and customs rebate claims and the DLTL claims were not paid by the government. Addressing a joint press conference at Multan Chamber of Commerce and Industry, the exporters and manufacturers said they were expecting zero rated regime facility for the five export-oriented sectors as per Prime Minister Nawaz Sharif’s announcement.

MCCI president Fareed Mughis Sheikh, APBUMA chairman Syed Muhammad Asim Shah, APTMA representative Khawaja Muhammad Ilyas, PCGA chairman Shahzad Ali Khan, MMCI ex-president Shahid Nasim Khokhar, MCCI senior members Khawaja Muhammad Yousaf, Atta Shafi Tanvir Senior Vice President of MCCI, All Pakistan Power Looms Association president Khaliq Qandeel Ansari, Dera Ghazi Khan Chamber of Commerce president Zulfiqar Nosha were also present. They said that it was obvious from the FBR’s proposal that it was no longer interested into increasing the tax revenue by broadening the tax net and bringing new tax payers in the tax net, especially retailers and shopkeepers, who were earning hefty profits but never pay tax. They said the FBR proposed hefty increase in sales tax for by 3 per cent to 5 per cent and wanted to withdraw exemption from 5 per cent withholding tax on power bills that was indeed most alarming news for the five zero-rated export sectors, including textile, carpet, surgical, sports, and leather. They said the news about FBR’s draconian move would destroy exports of their value-added zero-rated sector.

APBUMA zonal chairman and FPCCI vice president and MCCI president also spoke. To a query, PCGA Chairman said it was most unfortunate and indeed regrettable that the incumbent government had totally failed in increasing exports and it is evidently a matter of real concern that just because of the wrong policies. He urged the government to implement “No payment No refund” system with immediate effect and announce the most awaited incentive package for the export sectors. The All Pakistan Powerloom Association chairman demanded the federal government quick disbursement of all held up payments of exporters; revival of “No Payment No Refund” System; tariff of electricity, gas and water for export sectors should be brought down at par with regional competitors and announcement of the promised incentive package for the export sectors.

CALL TO REMOVE SEWAGE: Scores of residents of Sharifpura Saturday staged a demonstration on Masoom Shah Road against sewage floating in their streets.

The protesters blocked the road for six hours and raised slogans against inaction of Wasa authorities. They said streets in Sharifpura, Hafiz Jamal Road, Karampura and Islampura have become impassable due to floating sewage. They said they contacted the agency but their pleas were ignored. They ended the protest when Wasa teams arrived to remove sewage from streets.