President of Korangi Association of Trade & Industry (KATI) Danish Khan, Senior Vice President Faraz-ur-Rehman and Vice President Maheen Salman urged to continue zero-rating facility for the industry in a joint statement released by the association.
President Danish Khan said that if the facility would revoke, it would cause devastating effects on Industry.
He said that zero-rating facility to five major industries was given to support country’s exports and now when devalued rupee and increased interest rate already made unfavorable conditions for the industry if this facility will not continue then how will we increase the exports.
He said that an initial effect of any such step will bring down exports at least 2 or 3 billion USD. “ Exporters and industries facing liquidity issues just because of our delayed refunds of hundreds of billion and federal finance ministry weren’t ready to resolve this issue since almost a decade, now FBR asking to discontinue this facility just to make their balance sheet correct, Pakistani industry cannot bear the cost for this” he added . Mr. Khan said that any such action will not be accepted and the industrial community of the country would oppose this decision. He further said that government should consider the fact that any step which can increase the cost of production in industry, it directly affects the export volume and can we afford a decline in our exports at this stage? This is the question the government should have an answer for it.
