Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Gen V Season 2 trailer
    Videos

    Gen V Season 2 Trailer Cast, Plot, Premiere Details

    July 26, 2025 3 Min Read
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Non-payment of taxes: Is Karachi ready for a fashion crackdown?
PhotoNews PakistanPhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
PhotoNews Pakistan > Entertainment > Non-payment of taxes: Is Karachi ready for a fashion crackdown?
Entertainment

Non-payment of taxes: Is Karachi ready for a fashion crackdown?

Web Desk
By Web Desk Published September 5, 2015 6 Min Read
Share
SHARE
Karachi: With the Punjab Regulatory Authority (PRA) sealing off countless designer outlets in Lahore over non-payment of taxes, designers in Karachi have, albeit reluctantly, given their two cents on the matter and on whether the government’s move is ethical.

On Thursday, a PRA team sealed the outlets of Zara Shahjahan, Mini Bindra, Sania Maskatiya, Muse, Nida Azwer, Ayesha Imran, Shirin Hassan and Ammar Belal as well as six others in Lahore. According to a spokesperson, the outlets owe Rs80 million in taxes to the authority.

Under the law, companies providing services in Punjab are authorised to pay sales tax. The question, however, that many designers in Karachi have raised is whether the fashion industry is being singled out.

One such designer, a big name in Karachi’s fashion industry, who chose to stay anonymous, says, “They [the PRA] are primarily targeting the retail and service industry. The fashion industry is a growing industry, which needs to be subsidised. We don’t need to give this service tax, or else it should be given by all the people who belong to the service industry — doctors, lawyers, teachers, journalists, even the president and the prime minister of this country. Otherwise, we consider it a harassment of fashion designers only.”

Another designer, who also chose to remain anonymous, claims, “We are selling a product. Selling an outfit is selling a product. We are not delivering any other kind of services to anyone. If I go to a textile mill and tell them, ‘I want to design lawn for you,’ that will come under selling services to a textile house but not otherwise.”

Likewise, another designer chimes in, “We are already paying a lot of taxes. Why are they targeting us? What about those aunties who stitch from home, have a design label in their houses? They are the ones who are minting money, whereas we have overheads to pay maintenance to look after and run a business. Why should we be targeted?”

But don’t designers make millions? This question is immediately shot down by another anonymous designer, who says, “No, my dear you are certainly in the dark. They don’t. It’s the textile company that makes so much money; a designer never does. There are too many overheads that need to be paid and to be looked after.”

One of the designers goes on to call out the government further, saying the move to seal the offices seems ‘convenient’. “When there is no electricity, we are running the karkhana on the generator, no one comes to check on us, but when a new tax needs to be levied, they are the first to pinpoint us.”

Another fashion designer who also wishes to withhold her name claims, “Do you know how poor our kaarigaars are? They don’t even have bank accounts. They get paid via cash every Saturday so they are able to meet the financial budget on a weekly basis. You consider us rich?”

She goes on to add that companies provide services and designers don’t and there is no point in designers paying taxes that FBR is already charging them for. “Why should we pay service tax? FBR is already charging us. For a designer to make money is not easy, we have established a name, a logo, a marketing campaign that literally churns our budget out. This tax should be levied against everyone who belongs to the service industry. If they continue to do so, businesses [in the fashion industry] in the long run are going to run dry. Do they want us to shut our business down?

Who collects service taxes in Sindh?

Unlike income tax collected by the federal government from businesses and individuals every year through the Federal Board of Revenue (FBR), sales tax on services is collected by provincial governments.

The counterpart of the Punjab Revenue Authority (PRA) in Sindh is the Sindh Revenue Board (SRB), a provincial body set up in 2011 to collect sales tax on services.

The Sindh government claims the SRB is the only tax-collecting agency in the country that has consistently exceeded its tax collection targets since its establishment. It achieved its annual target of collecting Rs49 billion in sales tax on services in 2014-15, up 24% from a year ago. Its revenue collection is expected to be Rs61 billion in 2015-16.

Services rendered by fashion designers are taxable at the rate of 14% under the Sindh Sales Tax on Services Rules, 2011. In addition to fashion designers, sales tax on services is also applicable to interior decorators, programme producers, production houses, event managers, event photographers, event videographers, body massage centres, pedicure centres, healthcare centres and gyms.

TAGGED:Karachi
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Pashto Stage Dancer Muneeba Shah

Peshawar Stage Dancer Muneeba Shah Shot Dead in Targeted Attack

Hamas hostage release

Hamas Releases List of 20 Surviving Hostages for Gaza Ceasefire Deal

TLP Protest 2025

Islamabad and Rawalpindi Reopen After TLP Protest Clearance

Post Archives

More Popular from Photonews

Gold Prices Pakistan
Business

Gold Prices Hit Record Highs in Pakistan and Globally

1 Min Read
AFP Imposes Lifetime Ban on Salman Butt
Sports

AFP Imposes Lifetime Ban on Arshad Nadeem’s Coach

2 Min Read
Cuttack Durga Puja violence
World

Cuttack Odisha Violence: Curfew and Internet Shutdown After Durga Puja Clashes

3 Min Read
Business

KSE-100 Drops 736 Points on October 09 2025 Amid Heavy Selling

On October 9, 2025, the Pakistan Stock Exchange (PSX) extended its losing streak, with the KSE-100…

October 9, 2025
Tech

UK CMA Limits Google Search Monopoly with New Regulations

The UK’s Competition and Markets Authority (CMA) designated Alphabet-owned Google as having strategic market status in…

October 11, 2025
Khyber Pakhtunkhwa

PTI Replaces Ali Amin Gandapur as KP Party President

Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan replaced Ali Amin Gandapur as the party president of Khyber…

October 8, 2025
Pakistan

PIA Resumes Flights to UK from Islamabad to Manchester in October 2025

Pakistan International Airlines (PIA) will resume flights to the United Kingdom on October 25, 2025, with…

October 7, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?