The Federal Board of Revenue had put a proposal to impose Value Added Tax (VAT) on all categories of industries; however, the Chairman of Pakistan Tanners Association Mr. Gulzar Firoz expressed concern over this proposal.
He said imposition of VAT on all industrial categories might result in withdrawal of the sales tax exemption given to the five major export-oriented sectors such as textile, surgical, carpets, leather and leather goods.
The government exempted these sectors from sales tax to boost exports. Implementing this proposal would take its toll on the exports of the export-oriented industries, specifically, the leather industry, which had already slipped down by 29 percent and can see further decrease, he added.
Mr. Firoz appealed to the government and FBR not to take decisions which could affect the industrial sectors contributing mainly in generating foreign exchange.
Fibre2fashion News Desk - India
marketing@alchempro.com
