Reduction in tax on second-hand clothing welcomed

Islamabad

The users of imported second hand garments have welcomed the reduction in sales tax on used and worn clothing and said the relief would ease their expenditure.

While unveiling the federal budget for the next financial year, 2016-17, in the National Assembly on Friday, Finance Minister Ishaq Dar had announced the sales tax on second-hand clothing for the upcoming fiscal has been proposed to reduce to eight per cent from 10 per cent.

With the squeezing of the people’s purchasing power due to the rising inflation, more and more markets of imported used clothes are cropping up across the country, especially in major urban centres.

They sell articles from shirts to trousers to jackets to sweaters to undergarments to socks at the very nominal prices attracting crowds of people from low income groups.

These days, even the people from upper middle class are also seen in these markets, popularly known as lunda bazaars, in search of ‘branded and designer’s’ imported outfits.

The finance minister’s announcement to reduce tax on such garments sat well with the lunda bazaar visitors, who felt the move will reduce their spending.

“Though little, the reported cut in tax on second hand clothing is a welcome relief for people like me as we’re too poor to buy new garments. It will reduce my household expenses,” said Kamran Khan, a taxi driver.

Muhammad Zaman, a street vendor, too, felt the reduced tax on second hand clothes was a relief for him.

He said the escalating inflation had squeezed his purchasing power and therefore, besides taking some other ‘austerity’ measures, he had also turned to lunda bazaar for used clothing for himself and family members.  He demanded end to all kind of taxes on used garments to the relief of the poor people.