FAISALABAD: Keeping the stuck refund claims in mind, the exporters have demanded zero-rating sales tax for the textile industry in the upcoming budget for the fiscal year 2015-16.
Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha and Vice Chairman Rizwan Riaz Saigol urged the government to solve the issue of refund claims as the liquidity crunch a major stumbling block in the way of improving exports.
They said withdrawal of the zero-rating facility and imposition of sales tax would be detrimental to business activities as around 80% of textile products were exported in one form or other, with only 20% left for domestic consumption. Therefore, “zero-rating of the entire value chain for exports is imperative to remain competitive in the international market.”
Exporters say they are trapped in a vicious cycle of sales tax payment and refund claims with changes in the Statutory Regulatory Order.
