Lahore,(Parliament Times): The Pakistan Carpet Manufacturers and Exporters Association has expressed serious concern over the proposed legislation by the Government of Punjab to impose a 0.90 percent cess tax on imports and exports, urging the provincial authorities to withdraw the bill during its review stage in the standing committee.
In a joint statement, Association Chairman Mian Ateeq-ur-Rehman, Patron-in-Chief Abdul Latif Malik, Vice Chairman Riaz Ahmad, senior members Major (R) Akhtar Nazir, Usman Ashraf, Saeed Khan, and Chairperson of the Carpet Training Institute Ijaz-ur-Rehman said the proposed law would impose a *0.90 percent cess on production, finished goods and raw materials used in manufacturing. They added that imported and exported goods, as well as products passing through the territorial limits of Punjab, would also fall within the scope of the proposed levy, terming it an unjustified and burdensome measure.
The association leaders said that exports of hand knotted carpets are already facing a decline due to multiple challenges, and the imposition of an additional financial burden would further worsen the situation.
They pointed out that the export sector is already under pressure after the imposition of an additional one percent tax and the decision of the Federal Board of Revenue to shift the sector from a fixed tax regime to the normal tax regime, which has significantly increased the financial strain on exporters.
The association further noted that the Punjab government has recently referred another bill to a standing committee that could result in additional financial liabilities for exporters.
They warned that if the proposed legislation is approved, the export sector could face further decline amid the current economic challenges. The association urged the Punjab government to immediately withdraw the bill to protect export oriented industries, particularly the hand knotted carpet sector, and to ensure that Pakistan’s exports and industrial stability are not adversely affected.