PM announces zero-rated sales tax regime for exporters

Facility to be put in place from July 1

ISLAMABAD: Prime Minister Nawaz Sharif has announced zero-rated sales tax regime for export sector to facilitate export-led growth as it would be put in place from July 1.

The decisions would help in billions of rupee benefit to traders and producers of exporting goods. The prime minister announced this while addressing a group of leading businessmen here who met him at the PM House Friday and asked for the facility. The meeting was also attended by Punjab Chief Minister Shahbaz Sharif, Federal Finance Minister Ishaq Dar, Minister for Planning Ahsan Iqbal and other senior officials of the government. The businessmen lauded the leadership of the Nawaz Sharif for achieving macroeconomic stability and economic turnaround after significant improvements through prudent economic policies, efficient and transparent management and deployment of available resources and improvements in the overall security situation of the country during the last two and a half years.  The confidence of the business community to invest in diverse economic fields has been reinforced through business-friendly policies of the government, said the participants.

The prime minister reminded the participants that when the present government came into power, the country was confronted with crisis in security and energy, while the economy was virtually leading towards bankruptcy. However, the government took vital and bold decisions to improve the macroeconomic situation in the country.

The prime minister said that the government placed massive cuts on its non-development expenditures to create space for development spending. Energy sector was put on priority to generate 10,000 MWs of affordable electricity till 2018 that would lead to end of loadshedding and reduction in cost of electricity.

The premier termed the recent LNG agreement with Qatar as a breakthrough for Pakistan’s self sufficiency in energy. The gas deal, signed with complete transparency at a very low price, will not only cater to the CNG sector, industrial, commercial and domestic consumers but will also help in reinvigorating country’s non-efficient power generation plants into high-efficiency, low-cost power plants, he said.

The prime minister informed the meeting that the Qatari leadership has immense love and affection for Pakistani Diaspora. After witnessing the JF-17 Thunder and Super Mashaq show in Qatar earlier this week, they felt pride in the technological advancement and excellence of Pakistan’s defence production industry.

Nawaz announced that the government of Qatar has decided to employ an additional 100,000 skilled Pakistanis in near future.

The participants briefed the prime minister about existing business environment in Pakistan and shared their proposals for achieving rapid growth in Pakistan’s economy. They particularly referred to reforms in Federal Board of Revenue in the backdrop of coercive and exploitative measures against businessmen in the past and appreciated government’s resolve for creating a conducive environment for tax payers.

The participants also shared their proposals for encouraging youth in Pakistan through establishment of start-up businesses which is a rapidly growing phenomenon these days.

The prime minister constituted a committee to evaluate the proposals given by the participants for coming up with firm recommendations within next 10 days to reach at final decision. Nawaz appreciated the input of the businessmen and said that the private sector has a key role in Pakistan’s economic growth and he believes in broadening the tax base without harassing business community. Adversarial relations between tax machinery and tax payers must end in the best interest of the country, he said.

Earlier, outgoing Japanese Ambassador Hiroshi Inomata paid a farewell call on the prime minister.  He expressed satisfaction at the state of current bilateral relations between the two countries and said that Pakistan has performed extraordinarily in the domain of foreign policy besides impressive economic performance.

Talking to him the prime minister appreciated the ambassador’s contribution in further strengthening the bilateral ties between Pakistan and Japan and said that Pakistan attaches great importance to its relations with Japan. Hiroshi Inomata said that Pakistan’s efforts towards reaching out to its neighbouring countries are highly commendable.