KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Thursday urged the government to restore sales tax zero-rating for export oriented industries as due to withdrawal of this scheme many industries have shut down their activities.
KCCI President Junaid Esmail Makda in a statement 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.
He said that the industries have been compelled to pay to 17 to 20 percent sales tax after the withdrawal of zero rated regime, which has intensified the hardships for industrial units of all sizes as they face huge liquidity crisis and more importantly industry cannot borrow the loan from commercial banks at 14-15 percent interest rate which was not a feasible option.
“If the situation is not timely addressed, we fear that the export-oriented industries will not be able to operate smoothly and they will die”, he added.
Junaid Makda stressed that keeping in view the miseries being faced by the Industry, the government must reverse its decision to restore zero-rated regime for five export oriented industries while ample opportunity must also be provided to all the stakeholders to amicably settle this serious issue otherwise Pakistan exports, which comprise mostly of textile products, will go all the way down to zero.
The poor performance of export-oriented industries was something which neither the government nor the business community could afford particularly at a time when Pakistan was struggling really hard to somehow maintain and improve its depleting foreign reserves.