EXPORT-ORIENTED INDUSTRIES DEMAND IMMEDIATE WITHDRAWAL OF SUPER-TAX:

Unjust and uncalled-for imposition of 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. The Value-Added Textile exports have unsurpassed and achieved milestone 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 31.76 Billion for FY2021-22 in which total textile export is worth USD 19.4 Billion with an increase 26 percent, worth USD 4 Billion for which the Government has given punishment by imposing Super-Tax. Whereas, Karachi has, as usual, taken lead to achieve the milestone in exports with its more than 50 percent share. The new increase of 26 percent in value-added textile exports also tantamount to 26 percent enhancement in employment and as well revenue generation and taxes. Value-Added Textile sector is the only highest labour-intensive sector providing highest employment than the Government and any other sector. Provided the Government had ensured uninterrupted supply of energy/ gas, the export would have enhanced more than 26 percent. More than 40 allied industries of Textile have also excelled in their growth and performance. Similarly, Karachi generates around 70 percent 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 Rs 1600 Billion approx. which is 42 percent higher than previous year. The decision of the Government to impose super-tax on export-sector is very harsh and destructive and its financial impact will be fatal on the liquidity to operate the export-industries to fulfil orders in process and to accomplish new export orders. Why always the industry, business and salaried class is penalized and compelled for sacrifice with further burdening of taxes. Industry is paying the highest taxes as compared to other sectors. Others 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 Government. Therefore, the Value-Added Textile Export Industry demand the Government to immediately withdraw the super-tax imposed on the export-industry in the interest of 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 addressed to the Prime Minister and his economic team was given to press and electronic media by Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum; Abdul Rehman, Zonal Chairman, Pakistan Hosiery Manufactures & Exporters Association; Sheikh Shafiq, Central Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association; Kamran Chandna, Pakistan Knitwear & Sweater Exporters Association; Aitazaz A. Japanwala, Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association; Muhammad Ashraf, All Pakistan Textile Processing Mills Association; Kashif Mehtab Chawla, Towel Manufacturers Association of Pakistan; Asif Jawed, Pakistan Bedwear Exporters Association.