KARACHI, Sept 30: The five major exporting sectors, which have been granted zero-rated sales tax status on exports, have urged the government to extend the last date of September 30 for the utilization and consumption of carry-over stocks.

These exporting industries were exempted from the sales tax regime in the budget 2005-06 and were asked to clear their inventories by September 30, 2005.

However, these industries are now finding it difficult to exhaust their stocks in such a short period and are arguing that they have to hold stocks well in advance to meet sudden as well as seasonal demand of their foreign buyers.

“Normally we hold stocks for a minimum period of six months to meet the demand of foreign buyers who have stopped building their inventories to avoid financial and storage cost,” lamented Shabir Ahmed, chairman Pakistan Bedwear Exports Association.

He said that if we were asked to dispose of these stocks in a short period it was not possible and the industry had already paid huge sales tax on such inventories which the government have to refund it.