Five zero-rated sectors threaten to go on strike

Published June 11, 2019
Textile, sports, surgical goods, leather and carpet sector say strike to protest withdrawal of zero-rated regime. — Dawn/File
Textile, sports, surgical goods, leather and carpet sector say strike to protest withdrawal of zero-rated regime. — Dawn/File

KARACHI: The leaders of five value-added sectors have threatened to go on strike if the government withdraws zero-rated regime on their exports in the 2019-20 budget to be unveiled on Tuesday.

Addressing a press conference at Karachi Press Club on Monday, they said the withdrawal of this facility would serve no purpose and result in a liquidity crunch for the export-oriented sectors.

They alleged that all of this was being done to create liquidity for the government at the cost of country’s exports, which engages over a workforce of over one million people.

The representatives of these five sectors — textile, sports, surgical goods, leather and carpet — were critical of the government for taking such a decision at a time when exports are about to take off as a result of devaluation.

According to them, the initial impact of the recent rupee devaluation saw exports rise by 29 per cent in terms of rupee and 0.2pc in dollar.

They claimed that during negotiations with the government, it was initially stated that 16-17pc sales tax would be imposed on exports to be refunded later. However, the last offer put that figure only at 7.5pc.

Responding to a question, Zubair Motiwala — leader of the forum of five-zero rated sectors — said currently only 20pc of textiles constitute local sales, 1pc carpets, 5-7pc surgical goods whereas leather goods are all exports.

Published in Dawn, June 11th, 2019

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...
Tribunals’ failure
Updated 19 Nov, 2024

Tribunals’ failure

With election tribunals having failed to fulfil their purpose, it isn't surprising that Pakistan has not been able to stabilise.
Balochistan MPC
19 Nov, 2024

Balochistan MPC

WHILE immediate threats to law and order must be confronted by security forces, the long-term solution to...
Firm tax measures
19 Nov, 2024

Firm tax measures

FINANCE Minister Muhammad Aurangzeb is ready to employ force to make everyone and every sector in Pakistan pay their...