Pakistan Hosiery Manufacturers & Exporters Association (PHMEA) have rejected the government’s 10% super tax, claiming it would slow down the economy. The PHMEA representative held a press briefing in Faisalabad where they rejected the PML-N-led government’s new policy to impose a 10% super tax on 13 sectors, including textile, cement, gas terminals, and others.
Chairman PHMEA Kashif Zia said that the textile sector is already paying 29% tax, impose further taxes would damage the sector badly. He claimed that the interest rate of 13.75% would slow down the economy. The PHMEA Chief recommended that the government should bring more people into the tax net rather than imposing more taxes on existing taxpayers. Prime Minister Shehbaz Sharif announced a super-tax of 10% on large-scale manufacturers and industries in the country to address the country’s economic woes.
Federation of Pakistan Chambers of Commerce and Industry Acting President Shabbir Mansha, in a press statement, has categorically denounced the imposition of 10pcsuper tax on large industries, which already pay hefty corporate tax of 29% and generate millions of jobs in the country as well. “No country in the world can charge 39% tax to corporations and still keep the economy afloat. He added that new private-sector and foreign investments dry up entirely in an uncompetitive market.
The representatives of the Pakistan Readymade Garments Manufacturers and Exporters Association also issued a statement, “We reject and will resist this plan by all means. And soon we will arrange a meeting of all stakeholders by taking up the issue with the government.”
The textile sector is the backbone of Pakistan’s economy. The sector is looking forward to having good government support to help the country in its economic crisis further. However, the government’s current priorities are not pleasing; thus, the sector has rejected the super tax.
