Magoon said that the service tax is illegal, unconstitutional and cruel, and will not be accepted. He added that for withdrawal of this tax he will raise the issue on all forums after coming into FPCCI. He said that indenters get a one- to two-percent commission from exporters of other countries. It is not their income as the cost of running the office, staff salaries and transportation are is included in it.
Dubbing the service tax as double taxation, he said that the government is forcing indenters towards non-compliance, because the commission they get is already included in the total cost and all the applicable taxes are duly paid. The service tax is not applicable and it can hurt the interests of the province of Sindh, he warned.