Karachi, Chairman of Pakistan Leather Garments Manufactures & Exporters Association (PLGMEA) Ijaz Khan has welcomed the continuation of Sales Tax exemption on raw material purchases of registered persons of five export Sectors.
According to a release on Saturday he also appreciated the decision of the Government to reduce the sale tax rate to 16% from 17% and introduce flat rate of 5% GST on purchases of unregistered persons of the five export sectors. Ijaz Khan said that the reduction of Withholding Tax on cash withdrawal to 0.2% from 0.3% is also a positive measure in the Federal Budget for new fiscal year 2011-12. He however said that the increase in 1% VAT on commercial importers will increase the cost of raw materials of exporters as many exporters purchase their raw materials from commercial importers. He said that overall no measure has been taken in the budged to boost the exports of the country and owing to low investment and low growth in the economy the target of tax collection may not be achieved.
