Sialkot Chamber of Commerce and Industry (SCCI) President Dr Sarfaraz Bashir has expressed his concern over proposed increase in sales tax on exports from two to five percent, mentioning that it would greatly hamper exports to play havoc with the value-added export sector of Sialkot.
In a press statement issued here on Monday, he said that increase in prices of raw materials, rising tariff of electricity and gas and its non-availability have already increased the cost of doing business putting the export sector under immense duress. He said that it has become increasingly difficult for the exporters to compete in the international market and to fulfil orders of the foreign buyers.
Dr Sarfaraz Bashir said the issue of 1 percent withholding sales tax imposed on purchases from non-registered sales tax suppliers was hurting the export sector SMEs badly and has already created an additional financial burden on the export sector of Sialkot. Therefore, any further burden would crush the SMEs based export sector of Sialkot that is struggling for survival, he cautioned.
The SCCI President strongly recommended that any proposal to enhance sales tax on export should be abolished and he made an appeal to the Prime Minister, Federal Minister for Finance and Minister for Commerce that zero rated sales tax on the exports sector should be restore to encourage and motivate exporters to earn foreign exchange for the country that was 'life line' of economy.