Yarn merchants demand cut in taxes

KARACHI: Pakistan Yarn Merchants Association (PYMA) has demanded the government to reduce taxes on export-oriented sectors to save the industry from destruction, a statement said on Friday.

PYMA said Prime Minister Imran Khan has vowed to implement reforms, but the policies have been quite contrary to his claims. “Excessive taxation has crippled the textile sector, which is the backbone of the economy. Imposition of 17 percent sales tax has made it impossible for the textile sector to continue with the production activities,” it said.

PYMA said closure of large scale industry would also eliminate Small and Medium Enterprises (SMEs), resulting in a flood of unemployment. “Closure of business and industry would also impact government revenue collection.”

PYMA demanded the government to minimise taxes on export-oriented industries, including textile sector and also demanded to remove the discrimination in the taxation regime between manufacturer and commercial importers of raw material and intermediary goods at the import stage.