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Carpet exporters decry introduction of VAT
05 Apr '10
1 min read
According to experts from one of the allied industries of the textile sector, introduction of Value Added Tax (VAT) will mean removal of zero-rating facility current available on payment of Sales Tax, which could result in decline of exports.
According to Mr Pervaiz Hanif, Chairman of the Pakistan Carpet Manufacturers and Exporters Association (PCMEA), “VAT, which is supposed to replace Sales Tax, is anti-exports, as it would snatch away the zero-rated status of the textile, leather and carpet sector”.
Mr Hanif appealed to the government to continue the present status of zero-rating on Sales Tax for exporting industries as it would once again lead to culture of flying invoices and other malpractices, for which zero-rating on Sales Tax was introduced in the first place.
According to Mr Pervaiz Hanif, Chairman of the Pakistan Carpet Manufacturers and Exporters Association (PCMEA), “VAT, which is supposed to replace Sales Tax, is anti-exports, as it would snatch away the zero-rated status of the textile, leather and carpet sector”.
Mr Hanif appealed to the government to continue the present status of zero-rating on Sales Tax for exporting industries as it would once again lead to culture of flying invoices and other malpractices, for which zero-rating on Sales Tax was introduced in the first place.
Fibre2fashion News Desk - India
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