Daily Times

Pakistan Yarn Merchants Association (S&B Zone) Chairman Muhammad Saqib Goodluck on Monday opposed any expected step over withdrawal of zero-rated facility for five zero-rated export sectors.
Goodluck said in a statement that zero-rated facility must not be withdrawn and the government should adopt the “no tax no refund policy” maintaining SRO-1125.

He said the government advocates promotion of export and ease of doing business, but on the other hand problems were being created for industries. “The government should decide its economic direction so that the country may move forward on the path of economic development by promotion of business and industrial activities.”

He said that abolishing of zero-rated facility for five sectors would have disastrous effects on exports. “Local industries will be destroyed and capital will drain from the country, which will create highly negative effects on the exports. This will subsequently increase unemployment, while the government will face huge losses in foreign exchange.”

Goodluck further said that telling businessmen to “first pay tax and then get returns” was not a wise step. “When tax has to be returned, it is better not to collect tax. The government already has to pay refunds worth Rs 200 million to exporters, but it has no money for making that payment. Abolition of SRO-1125 will create additional burden on the government.”

The PYMA chairman said that there should be no comparison between industrial and commercial importers over tax, and added that it should be the same for both. He further said that by withdrawal of zero-rated facility, exporters would face a huge financial crisis, paying the way for corruption. He urged the government to scrap the idea of withdrawing the facility in the best interest of the country, and added that necessary steps must be taken to ensure favorable business environment.