LAHORE: Representatives of five value-added export sectors on Friday rejected the Federal Board of Revenue’s proposal to declare only those manufacturers as zero-rated who were exporting 60 per cent of their total production in the past.

According to sources privy to the meeting between a delegation of value-added sector and the FBR officials in Islamabad, the board was questioned as to how it would determine the production and export record of a new manufacturing unit.

The delegation pressed FBR for extending the zero-rated regime to five value-added sectors- textile, carpet, surgical, sports goods and leather trade across the board, the source added. .

They proposed to FBR officials to tax local sales of these industries at the retail stage. They also suggested the exporters should not be made to pay any tax on their production and later claim refunds.

Speaking at a joint press conference in Lahore, Pakistan Knitwear and Sweaters Exporters Association Chairman Shahzad Azam Khan and Pakistan Hosiery Manufacturers and Exporters Association Vice Chairman Abdul Hameed demanded speedy disbursement of all held up payments of exporters as well as the revival of the zero-rated tax regime and the ‘no payment, no refund’ system.

Pakistan Readymade Garments Manufacturers and Exporters Association’s Sajid Saleem Minhas and a large number of industrialists were present at the press conference.

Quoting Pakistan Bureau of Statistics’ statistics, they said overall exports of country decreased by 12.99 per cent while the exports of textile sector dropped by 7.72pc.

Published in Dawn, May 28th, 2016