Lahore: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) is calling for the refund of excess sales tax collected on semi-finished carpets imported from Afghanistan and the withdrawal of a 0.90 percent cess imposed on exports and imports in Punjab. The association claims these issues are exacerbating frustrations among manufacturers and exporters in the country's handmade carpet industry, which is a key source of foreign exchange for Pakistan.

According to Pakistan Carpet Manufacturers and Exporters Association, the delay in releasing funds for the 42nd International Carpet Exhibition, slated for October in Lahore, has further increased concern within the industry. PCMEA Chairman Mian Ateeq-ur-Rehman and Vice Chairman Riaz Ahmed emphasized that, due to these delays, preparations have not yet begun for the event.

The association referenced SRO 297(I)/2023, which states that carpets imported from Afghanistan should be subject to an 18 percent sales tax, as opposed to the 25 percent rate that was erroneously charged until the closure of the Torkham border. They are requesting guidance on how to secure refunds for the excess sales tax collected from the industry.

Additionally, the PCMEA leaders criticized the Punjab government's decision to impose a 0.90 percent cess, arguing that it adds to the challenges faced by exporters. They called for the cessation of this levy to promote export activity.

Concern was also expressed over the lack of funding for the upcoming carpet exhibition, which they argue is crucial for maintaining contact with foreign buyers and conducting promotional activities. The association warned that continued delays could hinder the success of the event and benefit rival countries seeking to dominate the international market for handmade carpets.

The PCMEA urged the government to release funds promptly to facilitate necessary preparations for the exhibition and support the industry in achieving its goals.