Five zero-rated sectors threaten to go on strike

The leaders of five value-added sectors — textile, sports, surgical goods, leather and carpet — have threatened to go on strike if the govt. withdraws zero-rated regime on their exports in budget FY20 to be unveiled on 11th Jun’19(Today). They claimed that during negotiations with the govt., it was initially stated that 16-17% sales tax would be imposed on exports to be refunded later. However, the last offer put that figure only at 7.5%. Zubair Motiwala — leader of the forum of five-zero rated sectors — said that currently only 20% of textiles constitute local sales, 1% carpets, 5-7% surgical goods whereas leather goods are all exports.

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