KARACHI, June 11: Chairman, Pakistan Seafood Industries Association (PSIA), Mohammad Hanif Khan, has said that the government has ignored the budgetary proposals submitted by the association for survival of fisheries sector.

He said exporters had been facing problems after the suspension of seafood exports by the European Commission (EC) on April 12.

In a statement, he said the PSIA had proposed zero-rated sales tax on utilities for 100 per cent export-oriented industry, reduction of withholding tax to 0.5 per cent on export instead of the present one per cent and duty-free import of printed packing material, including printed canes and lids, printed box board cartons, printed plastic pouches, printed plastic cups and lids.

Standard empty cans and lids are not manufactured in Pakistan and the quality of other packing material, like box board cartons and plastic products is almost un-presentable.

The association had sought duty, sales tax and income tax free import of plant and machinery for the production of value-added seafood products. It had also demanded duty-free import of insulated fish boxes and plastic crates and 25 per cent relief in diesel cost for fishermen hunting fish.

Hanif Khan said the government in the new budget had focused on sectors already developed and all incentives were being made available to them.

The fishing sector, which had the potential of one billion dollar export per annum, was totally ignored.

He said the ministry of food, agriculture and livestock had done nothing for the development of fisheries sector due to their other priorities. He urged the prime minister to review PSIA’s proposals and allow incentives so that the industry could survive.