Zero Rating must not be withdrawn, says Dr Baig

KARACHI: Dr Mirza Ikhtiar Baig, Senior Vice President, FPCCI in a meeting with Abdul Razak Dawood, Advisor to PM on Commerce and Textile, said the withdrawal of sales tax zero rating facility from textile, leather, carpet, surgical instruments and sports goods in the budget, will be a disaster to the exports which are already declining for the last five years. He said the FPCCI in collaboration with the value added exports associations worked hard to restore the zero rating facility and now due to the IMF demands, government is considering to withdraw the said facility which will seriously hurt their exports.

Baig said refund claims of the exporters amounting to Rs. 300 billion are already pending with FBR for the last many years and inspite of taking up the issue at the highest level, they are not being paid, causing serious liquidity crunch to the exporters. Dr. Baig said, after devaluing of Pak rupee by more than 20% during the last nine months and more than 35% during last one year, our exports have not increased even by 1% which is a a matter of serious concern. He requested the PM’s advisor to call an urgent meeting of the stake holders on this important issue before the budget.