Karachi, June 12, 2019 (PPI-OT): Patron-in-chief, North Karachi Association of Trade and Industry (NKATI), Captain A Moiz Khan, President Syed Tariq Rashid, Senior Vice President, Asfer Hussain, Vice President Faisal Shabu, Chairman Board Faraz Mirza and CEO Sadiq Muhammad deplored the withdrawal of zero-rating regime under the federal budget 2019-20 for five sectors and imposition of 17pc sales tax will have destructive effects on the industry, the officials condemns and demands the government for restoration of export tax facility and axe the SRO 1125 decision.
In a statement, the NKATI leaders said that the PTI government has time to time assured the Business community to provide a favourable business environment with the vision of simplifying the business and promoting exports, but practical measures were null and void against government claims. The burden on the trade and industry can be gauged by the burden of tax laid on the industry through this federal budget 2019-20.
He also said that the government has forgotten that industries are the right wheels of social and economic development, but it seems like the government’s drive for growth and development doesn’t not include our export industries.
NKATI leaders expressed their reservations, eliminating the sales tax waiver for export industries will increase the production cost up to inconceivable extent and the consumers will have to face the shortage of capital adversely effecting exports community, specifically, in situations where rates and utility charges are higher. Imposition of 17 percent sales tax by the government will be unviable and many of the small- and medium-sized exporters will be wiped out.
Therefore, the Government should revive SRO 1125 and provide the opportunity for five export sectors for turning the right wheels for further economic growth in other cases the government will be responsible for the consequences to come.
For more information, contact:
North Karachi Association of Trade and Industry (NKATI)
Plot No. ST 1/1, Sector 12-C, North Karachi Industrial Area, Karachi, Pakistan
Tel: +92-213-695-1695
Fax: +92-213-690-8269
Email: northkati@gmail.com, association@nkati.org
Website: http://nkati.org/