Sialkot, June 10, 2019 (PPI-OT): Khawaja Masud Akhtar (SI), President Sialkot Chamber along with Chairmen of All Trade bodies of Sialkot has strongly urged the Government not to abolish the facility of Zero-Rated Regime in the upcoming budget 2019-20 as it would have most negative effect on the already crises ridden Export Industry of Pakistan especially the SMEs of Sialkot.
The President said that Export Industry of Pakistan, despite challenges like increased input costs, pending refunds and drawbacks claims, and complicated business procedures and consistent devaluation of currency, was striving hard to sustain and contribute towards economic growth of the country in which zero rated regime is playing a key role. Withdrawal of Zero-Rated Status would negate the Prime Minister’s vision of boosting Exports and improving the Ease of Doing Business Ranking and would make it difficult for SMEs to compete globally.
The President SCCI said that the Federal Government had failed to produce an efficient mechanism for quick reimbursement of export refund claims which at present are pending worth PKR 200 (B). He also expressed his concerns over the Government’s announcement of January 16, 2019 to issue Promissory Notes which were only issued to 90 Exporters worth PKR 7 (B). Mr. Masud said that in given scenario, withdrawal of SRO 1125 would be a blow to the value added Export Sector of Pakistan and a last nail in the coffin of dying economy.
The President stressed that The Federal Government should instead devise strategies to increase its tax base and go after the tax evaders rather than adding additional burden to the existing tax payers of Pakistan, who regretfully, bear the burden of whole country. “The export sector is fighting the case of Pakistan to improve exports in order to reduce trade deficit, the only option to stabilize the economy. Withdrawal of Zero-Rated Regime would collapse the export sector which should not be allowed by the Government” Mr. Masud added.
Khawaja Masud Akhtar, expressed that the Exporters of Sialkot cannot afford such actions of the Government which made no sense but would only add to the woes of the exporters. President Chamber and Chairmen of all trade bodies stressed that the Federal Government should, on emergent basis clear the pendency to allow some breathing space to the exporters and cautioned the Government against withdrawal of an essential facility of Zero-Rating for export sectors.
President SCCI and Chairmen of all Trade Bodies announced observing of “Zero Export Day”, if the Government withdraws SRO 1125 with strategy for country wide protests to be announced later with the coordination of FPCCI and other Trade Bodies.
For more information, contact:
Sialkot Chamber of Commerce and Industry
Shahrah-e-Aiwan-e-Sanat-o-Tijarat
Sialkot – 51310
Phone: (92-52) 4261881-3
Fax: (92-52) 4268835 / 4267919
E-mail: sialkot@scci.com.pk
URL: http://www.scci.com.pk