LAHORE: While backing the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) call for withdrawal of 2 percent sales tax on export-oriented industry, the Lahore Chamber of Commerce and Industry Wednesday urged Federal Board of Revenue (FBR) to withdraw the SRO 154(I) 2013 in this regard.
LCCI President Farooq Iftikhar said here that as per international law and under WTO regime no export sector could be taxed. He recalled that in 2005, the FBR had declared textile, leather, surgical goods, sports goods and carpets as zero-rated sector to encourage exports and ensure relief to exporters from cumbersome refund process but the SRO 154(I) 2013 has pushed them again into the refund regime.
He suggested that status of zero rating be maintained through withdrawal of SRO 154 and the FBR should strive to ensure growth in the industry so that more revenue could be generated. "Export is the most well documented sector of the economy and hence its growth means more revenue for the government," he observed.
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