Interviews
Leather garments body lauds continuation of ST exemption
07 Jun '11
2 min read
Chairman of Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA), Fawad Ijaz Khan has hailed the Federal Bureau of Revenue's (FBR) move of prolonging the sales tax exemption on purchases of raw materials by registered members of five export-oriented sectors.
The FBR has aptly addressed the leather garments industry's apprehension that the exemptions available to the registered members of the sector would be removed, he said.
The PLGMEA Chairman even lauded the Government's move of slashing the sales tax rate from 17 percent to 16 percent and introduction of flat five percent GST on purchases by unregistered members of the five export sectors.
Federal Budget 2011-12's provision of reducing the Withholding Tax on cash withdrawal from 0.3 percent to 0.2 percent and the revenue measure of widening the tax base and issuance of notices to 700,000 prospective taxpayers to bring them within the ambit of tax cover were also hailed as positive moves.
However, Fawad stated that the one percent hike in Value Added Tax (VAT) rate on imports made by commercial importers would hike the cost of raw material for exporters, as many of them procure their raw inputs from commercial importers.
Mr. Fawad expressed disappointment that no new measures have been introduced in the Federal Budget 2011-12 to increase the country's exports. He said that though the country's target of achieving US$ 24 billion in exports during the 2011-12 fiscal would be met, uncertainty still prevails over authenticity of these exports.
The FBR has aptly addressed the leather garments industry's apprehension that the exemptions available to the registered members of the sector would be removed, he said.
The PLGMEA Chairman even lauded the Government's move of slashing the sales tax rate from 17 percent to 16 percent and introduction of flat five percent GST on purchases by unregistered members of the five export sectors.
Federal Budget 2011-12's provision of reducing the Withholding Tax on cash withdrawal from 0.3 percent to 0.2 percent and the revenue measure of widening the tax base and issuance of notices to 700,000 prospective taxpayers to bring them within the ambit of tax cover were also hailed as positive moves.
However, Fawad stated that the one percent hike in Value Added Tax (VAT) rate on imports made by commercial importers would hike the cost of raw material for exporters, as many of them procure their raw inputs from commercial importers.
Mr. Fawad expressed disappointment that no new measures have been introduced in the Federal Budget 2011-12 to increase the country's exports. He said that though the country's target of achieving US$ 24 billion in exports during the 2011-12 fiscal would be met, uncertainty still prevails over authenticity of these exports.
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