MULTAN: Increase in sales tax on raw material in budget 2015-16 will badly affect the textile industry, said Khawaja Jalaluddin Roomi, chairman of the All Pakistan Bed sheets and Upholstery Manufacturers Association.
In a statement, Roomi warned the government that if tax on the purchase of raw material will be increased from 2 percent to 5 percent in the budget, it will damage the growth of the textile sector in the country. He said that the business conditions are already miserable in the country due to energy crisis and law in order situation.
He announced that the his association is already in touch with the Federation of Pakistan Chamber of Commerce and Industry and if government increases the sales tax on the purchase of raw material then we will adopt mutual strategy against the government decision. Government should take any initiative for the relief of taxes for business community due to complicated tax system manufacturers are facing the trouble of refund payment he expressed.
He said that suggestions of tax increase on the textile thread, cloth ,dying and chemical would be harmful for the textile sector and there will be severe reaction come from the value added sector of textile in case of tax increase in the manufacturing of leather, sports goods and garments sector.
He wondered that the regional tax office of Federal Board of Revenue is not clearing their past refund claims as the manufacturers are facing shortage of capital so government should immediately pay all the tax refunds.
Former Chairman All Pakistan Bed sheets and upholstery Manufacturers Association Syed Muhammad Asim Shah demanded at this occasion that government should make all export related industries tax free for the promotion of business in the country as it will create job opportunities for masses.
He added that government should develop the tax form more easy and simple to eliminate the complications in payment of tax returns for the small traders as well as big traders .He added the exporters have concerned over the delay in payment of their tax refunds from the regional tax and rebate.
He told that government should call the conference of his association before taking any decision regarding taxes and levies before the preparation of new budget.
