Unisame urges withdrawal of sales tax on relief goods

KARACHI: The Union of Small and Medium Enterprises (Unisame) has said that at a time when the country is experiencing flash floods and high inflation, it would be unwise to impose sales tax on food, clothing and relief goods such as tents, plastic jerry cans, ropes, rugs and blankets, a statement said on Tuesday.

Unisame President Zulfikar Thaver said that it is indeed painful and shameful to note that there is a 17 per cent sales tax on white fabric used to wrap bodies. There is 17 per cent sales tax on food items and there is sales tax on second-hand clothing also, although the common man is no longer in a position to buy new clothes and resorts to second-hand clothing.

There is an immediate requirement of all the relief goods such as food items, medicines, clothing and shelter and the government is well-aware of this but has not taken any action to withdraw sales tax on these goods, Thaver added.

The goods purchased by the donors for relief goods are subject to 17 per cent sales tax, which is reducing the quantity of goods, as the donors have a budget and if the sales tax is withdrawn then more goods can be purchased within the budgeted amount.

The Unisame Council has urged all the provincial governments to immediately withdraw the sales tax on relief goods for earnest relief to the victims of this great tragedy.

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