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Motiwala stresses ST rate rationalisation to face ATT challenges

Motiwala stresses ST rate rationalisation to face ATT challenges

KARACHI: The Sales tax rate should be rationalised for local industry to cope with the huge influx of goods being imported on zero-rated under Afghanistan Trade Transit (ATT).

According to ex-Karachi Chamber of Commerce and Industry (KCCI) president Zubair Motiwala, the government should adopt the policy of ‘no payment no refund’ for local exports which would help to minimise ST rate for the industry.

He pointed out that huge quantity of fabric was coming into Pakistan under ATT which must be regulated to provide breathing space to the local industry, adding that all type of fabric also coming into the country from India via Wagah border destined for Afghanistan and through third country.

He stressed that a minimum sales tax rate was need of the hour to combat influx of goods under the ATT with zero rated.

The former KCCI chief said a preferable policy for sales tax especially for value-added textile sector was a must cope with the challenges like ATT, menace of under invoicing, high cost of manufacturing due to under utilization of installed capacity, non-availability of basic infrastructure and the deteriorated law and order situation.

The refund regime blocks huge amount of exports funds and it is necessary for this particular sector that their taxation policies are prepared, keeping in view of prevailing adverse factors, he added.