Value-added textile exporters slam 300% higher taxes

Web DeskWeb Editor

01st Jul, 2021. 07:58 pm
Value-added textile exporters slam 300% higher taxes

KARACHI: The Pakistan government has put exporters in a difficult position by imposing 300 per cent higher tax on the value-added textile exporters, compared with the local businesses, a statement jointly issued by the value-added textile sector said on Thursday.

The value-added textile exporters said this is for the first time that exporters were burdened with such a high tax rate.

The federal government, in the budget 2021/22, has facilitated the local small and medium enterprises (SMEs) and neglected, as usual, the SMEs of the export sector, it said.

In its budget proposals, the value-added textile sector had demanded the federal government to reduce the income tax, as well as sales tax rates for exporters but in vain.

Globally, there are no taxes on export business and where taxes charged on exports are lower than the local business, while in Pakistan, the situation is contrary to that.

The value-added textile sector expressed disappointment over the government’s failure to consider its suggestions.

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