Industry And Cluster | News & Insights

Value-added textile exporters face tax increases of up to 300 percent

Published: July 2, 2021
Author: Manali bhanushali
The Pakistan government has put exporters in a tough situation by imposing a tax that is 300 percent more on value-added textile exporters than on local firms, according to a statement published jointly by the value-added textile sector on Thursday.
According to value-added textile exporters, this is the first time such a high tax rate has been imposed on them. In the fiscal year 2021/22, the federal government aided local small and medium-sized companies (SMEs) while ignoring export-oriented SMEs, as is customary.
The value-added textile sector has requested that the federal government cut income and sales tax rates for exporters, but in vain. Globally, there are no taxes on export business and the taxes imposed on exports are lower than those charged on domestic companies, but in Pakistan, the situation is the opposite.

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