KARACHI, Dec 2: The Pakistan Hosiery Manufacturers Association (PHMA) on Thursday said the Bangladesh government had removed value-added tax on all those industries that exported their entire production.
In a statement issued here, PHMA Chairman Aslam Ahmed Karsaz said: "In our country, the industry is overburdened with numerable taxes and duties and huge funds are blocked in overdue sales tax refunds."
Besides this, he said there was a large number of government agencies who collect "legal and illegal charges" from the export industry, resulting in higher cost of production.
Mr Karsaz urged the government to take strenuous steps to ensure that Pakistani exporters stayed competitive in the quota-free market. He also asked the government to create more jobs in the country.
He feared that Pakistan exporters would not be able to face the competition from Bangladeshi, Chinese and Indian exporters as their exports were heavily subsidized. He said: "The government seems not serious to our suggestion and demands for reforms and facilitation to exporters through one-window operation."
Mr Karsaz said the Bangladesh government took a bold step to save its 100-per cent export-oriented industry and was prepared to face the upcoming quota-free regime where competitive prices would play a major role.
