KARACHI: Taxes and duties approved in federal budget for fiscal year 2019-20 came into force from July 1, the first day of the new financial year.
The government has imposed 10 percent Regulatory Duty on used clothes in budget causing concerns for the importers as users also expecting hike in prices of used clothes.
Pakistan Second Hand Clothing Merchants Association (PSHCMA) has urged the government to withdraw 10 per cent regulatory duty on import of used clothes.
The merchants body has also urged to bring down withholding tax on used clothes to one percent from current existing six percents.
Increasing taxes and depreciation of rupee against the dollar would have damaging impact on the business, the traders body complained.
The traders association calling the 10pc regulatory duty as unjustified, said the move was making the life of middle and lower income people difficult.
The imports are already getting costlier owing to depreciation of rupee against the dollar, the statement said.
Imposing regulatory duty on these items is unjustified as they are already burdened with siex percent withholding tax, five percent sales tax and five percent import duty,they added.
According to Pakistan Bureau of Statistics (PBS), import of worn clothing rose to 426,797 tonnes valuing $165 million in 11 months of FY19 as against 404,737 tonnes worth $148m in same period last year.
