LAHORE: More than 50 percent of the textile industry may be closed if the government alters the Reduced Rate Regime and fails to release stuck up refunds as well as does not ensures liquidity supply from banks to the industry immediately.
This was stated by All Pakistan Textile Mills Association (Aptma) Chairman S M Tanveer whle talking to media. He said that refund claims worth Rs100 billion of across the board textile industry have been stuck up with the Federal Board of Revenue with no clue as when these would be released. It has choked the textile industry and causing colossal losses due to the constraints beyond its control, he added.
Tanveer further said rumors are circulating fast that the government is mulling over imposition of 5% sales tax on all inputs and utilities across the value chain under the Reduced Rate Regime.
A rough estimate suggests that it may lead to stuck up of further refunds worth Rs250 billion on major inputs. This figure may even move up further in case minor inputs and utilities are added to this levy.
