Pakistan’s largely undocumented fashion industry says it needs government patronage rather than tariffs and taxes to thrive but has no idea about its worth or the contribution to the national economy.
A multi-million-rupee industry that remains mostly unregulated particularly in terms of taxable income.
Over the years, fashion weeks have become a prominent fixture in Pakistan’s mainstream and social media, with the glamorous events getting a lot of press internationally, mostly for defying Taliban threats and presenting a softer image of the country.
Fashion is a $1.5 trillion-industry globally. The fashion business in New York is worth $98 billion generating nearly $2bn tax revenues annually. The fashion industry and clothing sector in France alone has an estimated turnover of $100bn annually, with Paris Fashion week playing a pivotal role.
The Milan Fashion Week 2014 helped Italy as it struggled to emerge out of recession, with earnings expected to reap revenue of $85.63 million. The London Fashion Week contributes $46 million annually to the city’s economy.
But Pakistan’s fashion industry, which wants tax relief, has no numbers to support its contribution.
“Recently the FBR issued a notification to tax fashion designers for their services. So now we have to pay 10 per cent even if we sketch a design, forget about production,” says Deepak Perwani.
“If you start imposing taxes already when it’s just stepped off from its infancy stage, it will stop growing. We are hearing that ‘come March and all these billboards for lawns will be up, there is so much money. There are people who are making money but there are also those people who are trying to understand the market dynamics. Three years ago we had over a 100 lawn brands, this year there were only 60. Give the industry a chance to flourish,” he pleads.
