New VAT regime could hurt leather
08/01/2009
Fawad Ijaz Khan, chairman of the Pakistan Leather Garment Manufacturers & Exporters Association (PLGMEA), has asked the country's government not to withdraw a zero-rating for sales tax, a concession granted to five exporting industries, including leather.
He said the government is currently working on a new value-added tax (VAT) system. Pakistan has agreed with the International Monitory Fund (IMF) to put the new VAT system in place, but Mr Fawad said the new set-up would harm the leather industry. He further stated that the government should conduct a seminar to discuss the VAT regime with stakeholders to work out future strategy, something he said had formed part of the IMF agreement.
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