LAHORE: The readymade garments manufacturers have lauded the Federal Board of Revenue’s decision of granting zero-rated facility to the export sectors.
“We welcome the prime minister’s initiative of zero-rated sales tax regime to facilitate the export-oriented industry, which has been its long-standing demand,” said Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) Chief Coordinator Ijaz Khokhar in a statement.
He said the step would help promote the country’s exports, which had been stagnant since long. “It will put the economy back on rails, boost the trust of not only local businessmen but will also give a very good message to foreign investors,” he said.
Khokhar said the zero-rated sales tax regime would bring down the cost of doing business and Pakistani products would be able to win their due share in the international market. He hoped that the incentive would jumpstart national exports, expand the industrial base and generate employment opportunities.
The Prgmea chief coordinator said the reintroduction of zero-rated or no-tax and no-refund regime for the apparel sector, which contributed more than 50% to foreign exchange earnings, was a positive step for restoring viability of the ailing garment industry. He also appreciated the reduction in export refinance rate by 0.5%, saying the government should also announce a comprehensive package for the industry.
