Single-digit sales tax must for export growth

KARACHI: There is a dire need to bring down the sales tax rate to a single-digit in order to boost exports of the country.

The exports have come down due to several issues, including infrastructure and flaws in the revenue collection.

Dr Qaiser Bangali, a leading economist, stated this, while delivering a speech on the topic of “Present economic situation of the country” at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday.  He said the economic growth remained slow during the last few years due to the lack of consensus on core issues.

Further, the policymakers failed to give sustainable framework and focused on short-term policies, he said.

The country’s imports were increasing and oil bill is around 40 percent of the annual imports, he said, adding that the country is dependent on oil import for electricity needs.  He suggested the government to take benefit from Thar coal to meet the energy needs.

Dr Bangali also pointed out towards future water crisis and said that the authorities should adopt modern technologies against such challenges.

He stressed on diversification of export destinations. For the last many years, Pakistan’s exports were dependent on rice, leather and garments, which should be expanded to other products, he said.  The presentation of Dr Bengali was hosted by Tajwar Baig, chairman of the FPCCI Standing Committee on Corporate Relations.

FPCCI vice presidents Arshaf Farooq and Zulfiqar Ali Shaikh, Gulzar Feroze, Waseem Vohra, Farooq Dhedi, Nasir Chandana, Shahzad Ghouri and Farzana Khan were also present on the occasion.