July 06, 2022: Unjust and uncalled-for imposition of a 10 percent super-tax, in addition to all multiple, levied taxes, is highly disastrous for export-oriented industries which have been actively performing in the most difficult economic turmoil in the history of Pakistan. Thus, the industry demands to immediately withdraw the super-tax, Value Added Textile Forum said in a press statement on Wednesday.

The Value-Added Textile exports have unsurpassed and achieved milestones with historic enhancement in export and foreign exchange earnings. Imposition of super-tax will push the exports towards doldrums and shall completely shatter the hard efforts of exports and will sabotage value-added textile export.

The export-oriented is delivered beyond excellence and total national exports recorded to the tune of approx USD 28.87 Billion (11 months of FY2021-22) in which total textile export is worth $17.62 billion with an increase of 28 percent whereby Karachi has, as usual, taken lead to achieve the milestone in exports with its more than 50 percent share.

The new increase of 28 percent in value-added textile exports is also tantamount to a 28 percent enhancement in employment and as well revenue generation and taxes. Provided the Government had ensured an uninterrupted supply of energy/ gas, the export would have enhanced by more than 28 percent. More than 40 allied industries of Textile have also excelled in their growth and performance. Similarly, Karachi generates around 70 percent of revenue for the national exchequer and this fiscal year record revenue is again contributed by Karachi for the country.

According to FBR, Karachi, as usual, also holds the highest share of Income Tax collection as Karachi gave Income Tax worth Rs1600 billion approx. which is 42 percent higher than the previous year. The decision of the Government to impose a super-tax on the export sector is very harsh and destructive and its financial impact will be fatal on the liquidity to operate the export industries to fulfill orders in process and to accomplish new export orders. Why always the industry, business, and salaried class penalized and compelled to sacrifice with further burdening of taxes.

The industry is paying the highest taxes as compared to other sectors. Other sectors, as compared to industry, are under-taxed or pay very nominal tax. Whereas, a huge parallel economy is paying zero taxes and left unbridled and scot-free by the Government which shows forgetfulness on part of all successive governments.

Therefore, the Value-Added Textile Export Industry demand to immediately withdraw the super-tax imposed on the export industry in the interest of the national economy and exports, otherwise, the sitting government shall be completely responsible for the expected destructive impact on the export sector which may lead to complete closures and lay-offs heading towards massive unemployment and law and order situation.

This joint statement was given to the press and electronic media by Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum; Abdul Rehman, Zonal Chairman, Pakistan Hosiery Manufacturers & Exporters Association; Sheikh Shafiq, Central Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association; and others major exporters of the country.

Press Release

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