Commerce minister assures tax relief for sports goods exporters

ISLAMABAD: The Minister for Commerce, Jam Kamal Khan has assured the Government is steadfast in its commitment to reducing the tax burden on exporters while talking to industry representatives during a key meeting with the Sectoral Council for Sports Goods.

The virtual meeting, held at the Ministry of Commerce on Monday, focused on addressing the challenges faced by the sports goods industry, with particular attention to taxation and energy production policies, according to a press release.

During the discussion, Jam Kamal Khan pledged to reconsider the current policy that imposes a cap of 100KW on solar energy production for export-oriented industries.

According to the Pakistan Bureau of Statistics (PBS), the country’s exports rose by 10.54% ($2.921 billion) to $30.645 billion in the fiscal year 2023-24, up from $27.724 billion in the previous fiscal year 2022-23.

The Bureau’s monthly trade data also highlighted that Pakistan’s trade deficit decreased by 12.32% in the fiscal year 2023-24, amounting to $24.089 billion compared to $27.474 billion in 2022-23.

Imports saw

a slight decline of 0.84%, totalling $54.734 billion in 2023-24, down from $55.198 billion in the previous fiscal year. However, the trade deficit widened by 30.39% year-on-year, reaching $2.390 billion in June 2024, compared to $1.833 billion in June 2023.

This move is expected to alleviate operational constraints and enhance the competitiveness of the sports goods sector, which heavily relies on sustainable and cost-effective energy solutions, said the commerce minister.

Read More: Pakistan’s textile exports record 3pc drop on MoM basis in June 2024

Furthermore, Jam Kamal Khan agreed to present the industry’s proposals to the National Export Development Board, advocating for the retention of the Fixed Tax Regime.

Exporters informed the commerce minister that this regime is crucial for shielding them from the potential harassment associated with the Normal Tax Regime, which involves multiple tax departments.

The commerce minister underscored the Government’s ongoing efforts to foster a conducive environment for exporters, particularly in the sports goods sector, which is a significant contributor to the country’s economy.