LAHORE: The All Pakistan Textile Mills Association (Aptma) has urged the government not to impose further taxes on textile industry to achieve revenue target.
The Aptma, in its budget proposals for 2015-16, said that fiscal incentives including zero rating tax holiday, interest support for new investments in all textile sectors should be ensured without excluding the spinning sector, which has lagged behind competitors due to the present inefficient technology.
APTMA Chairman SM Tanveer said that the textile industry should be zero rated in terms of all the federal, provincial, local, cess, levies and duties by factoring in the drawback of local taxes and levies by extending 5 percent, 10 percent and 15 percent duty draw backs against the export of yarn, fabrics and made-up/clothing respectively. The government should clear the long pending refunds, which are estimated to be around Rs. 100 billion enabling ample liquidity for the industry to remain afloat, he added.
The Aptma chairman said the government should restore original zero rating regime. Government should not burden basic raw materials including polyester, staple fibre (PSF), viscose and cotton with upfront duties and taxes including customs @ 6% on PSF/ viscose, cotton with 5 % Sales Tax and 5.5 % Withholding Tax.
The govt should allow import of generators/power houses/boilers for industry at zero customs duty for encouraging in-house generation and consumption of electricity. All sustainable energy solutions should stay at zero custom duty slab for textile industry to undertake investment initiatives.
