LAHORE: The readymade garments manufacturers has asked the government to give value-added textile industry special status and zero-rating status to revive the economic activities in the country.
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Ijaz Khokhar said that more than 30 percent working capital of textile sector was stuck-up under refund regime, because several incentives announced in current budget including rationalisation of refund regime and complete settlement of all outstanding refund claims could not be implemented so far.
Pakistan Textile Policy 2009-14 with outlay of Rs188 billion could be implemented only 15 percent, Ijaz Khokhar said. “No Tax-No Refund formula should be applied on value-added textile chain by including it in zero rated regime to get rid ofliquidity crunch,” he demanded.
Khokhar suggested the Federal Board of Revenue (FBR) to evolve a mechanism to eliminate liquidity problems of refund claimants and frivolous litigation pertaining to refunds.
