• About Us
  • Contact Us
  • Cookies Policy
  • Terms of Use
  • Affiliate Disclosure
Thursday, February 5, 2026
  • Login
Imroze Pakistan
  • Home
  • National
  • International
  • Business
  • Sports
  • Entertainment
  • Blog
No Result
View All Result
  • Home
  • National
  • International
  • Business
  • Sports
  • Entertainment
  • Blog
No Result
View All Result
Imroze Pakistan
No Result
View All Result

PHMA Warns Against Imposing Sales Tax on Import Stage

June 4, 2025
0
Post Views: 899

EFS was developed to simplify export procedures

and enhance Pakistan’s export. Imposing sales

tax at the import stage defeats its purpose

Business Reporter

Karachi: The Pakistan Hosiery Manufacturers & Exporters Association (PHMA) Chairman Muhammad Babar Khan has strongly opposed the All Pakistan Textile Mills Association’s (APTMA) recent call to impose sales tax at the import stage under the Export Facilitation Scheme (EFS) 2021. He warned that such a move would sabotage exports, worsen the liquidity crisis, and harm the textile industry.

Babar Khan described APTMA’s stance as irrational and misleading, questioning why the association—after supporting the EFS since its inception in 2021—has now changed its position. He urged APTMA to support PHMA’s demand to retain the original structure of EFS prior to the Federal Budget 2024-25.

“EFS was developed with broad stakeholder consultation to simplify export procedures and enhance Pakistan’s export potential. Imposing sales tax at the import stage defeats its purpose,” Khan stated.

PHMA Demands Restoration of Local Procurement Under EFS

PHMA has demanded that the government reinstate local procurement privileges under Section 880(1)(b) of SRO 957(I)/2021, which allowed local purchases of input goods against zero-rated invoices. This measure ensures a level playing field for the entire textile value chain.

Babar Khan warned that imposing sales tax on imports under EFS would be another “fatal blow” to liquidity-starved apparel and textile exporters, many of whom already face delays in sales tax refunds. He noted that the collection of sales tax from exporters—only to later refund it—is a futile exercise, adding no value to revenue collection and increasing the risk of tax fraud.

EFS is Key to Enhancing Export Competitiveness

Babar Khan emphasized that EFS has proven to be a crucial tool for exporters. The scheme consolidated previous facilitation programs, reduced documentation, and enabled access through a fully automated digital platform via WeBOC and Pakistan Single Window (PSW). Real-time audits and end-to-end traceability have helped regulate compliance costs and ease liquidity pressure for exporters.

He pointed out that successful export-driven economies like Bangladesh and Vietnam also operate schemes similar to EFS, supporting their import-dependent textile sectors.

Industry Urges Government to Avoid Imprudent Decisions

Khan cautioned the government against taking “unwise and imprudent actions” that could reverse the efforts of the export industry. He highlighted the already sky-high costs of manufacturing, record energy tariffs, and expensive inputs, which have rendered several industry segments unviable.

“Imposing sales tax in EFS will not increase tax revenue but will worsen the trade deficit and slash export earnings,” he warned.

Instead of burdening compliant exporters, PHMA called on the government to target non-taxpayers who are not contributing to the national exchequer and continue to evade taxes.

Previous Post

Grand Urdu Mushaira Showcases Renowned Pakistani Poets in UAE

Next Post

P@SHA, ADB Sign Landmark MoU to Accelerate Pakistan’s Digital Transformation

Related Posts

World Bank President Ajay Banga visits Sindh flood housing project
Business

World Bank President Ajay Banga visits Sindh flood housing project

February 5, 2026
Indonesian CG visits Nawabshah, pushes trade and investment cooperation
Business

Indonesian CG visits Nawabshah, pushes trade and investment cooperation

February 5, 2026
Karachi Hosts International Women Leaders Summit on Inclusion and Sustainable Growth
Business

Karachi Hosts International Women Leaders Summit on Inclusion and Sustainable Growth

February 3, 2026
PM Shahbaz announced reduction in electricity tariffs by Rs 4.04 per unit for industry
Business

PM Shahbaz announced reduction in electricity tariffs by Rs 4.04 per unit for industry

January 30, 2026
Pakistan emerges as key Asian palm oil market
Business

Pakistan emerges as key Asian palm oil market

January 28, 2026
Pakistan-UAE trade conference held in Dubai to boost food and agro exports
Business

Pakistan-UAE trade conference held in Dubai to boost food and agro exports

January 27, 2026
Next Post
P@SHA, ADB Sign Landmark MoU to Accelerate Pakistan’s Digital Transformation

P@SHA, ADB Sign Landmark MoU to Accelerate Pakistan’s Digital Transformation

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent News

Pakistan, Kazakhstan set $1bn trade target, sign 37 agreements

Pakistan, Kazakhstan set $1bn trade target, sign 37 agreements

February 5, 2026
PM Shehbaz vows complete elimination of terrorism, calls for national unity

PM Shehbaz vows complete elimination of terrorism, calls for national unity

February 5, 2026
World Bank President Ajay Banga visits Sindh flood housing project

World Bank President Ajay Banga visits Sindh flood housing project

February 5, 2026
Sri Lanka marks 78th Independence Day in Karachi

Sri Lanka marks 78th Independence Day in Karachi

February 5, 2026
Indonesian CG visits Nawabshah, pushes trade and investment cooperation

Indonesian CG visits Nawabshah, pushes trade and investment cooperation

February 5, 2026

Imroze Pakistan is your trusted digital news platform, delivering timely and credible updates from across Pakistan and around the globe. From breaking headlines to insightful features on politics, economy, society, and international affairs — we aim to inform, engage, and empower our readers with facts that matter.

Gallery

British-Pakistani Shatters A-Level Records with 6 World Titles
British-Pakistani Shatters A-Level Records with 6 World Titles
inDrive Wins Gold at Dragons of Pakistan Awards, Secures Spot in Dragons of Asia Competition
inDrive Wins Gold at Dragons of Pakistan Awards, Secures Spot in Dragons of Asia Competition
Sindh CM Marks Independence Day at KCCI, Announces Major Water Projects
Sindh CM Marks Independence Day at KCCI, Announces Major Water Projects

Popular Post

PM Shehbaz Sharif Unite for a Powerful Partnership: Pakistan and Turkey’s Future Plans Revealed!

August 3, 2023

“Strategic Synergy: Faraz-ur-Rehman Advocates Industry-Education Collaboration for National Growth”

October 27, 2023

UN chief calls for ‘immediate’ ceasefire in Gaza

January 16, 2024
  • About Us
  • Contact Us
  • Cookies Policy
  • Terms of Use
  • Affiliate Disclosure

© 2025 Imroze Pakistan - All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • National
  • International
  • Business
  • Sports
  • Entertainment
  • Blog

© 2025 Imroze Pakistan - All Rights Reserved