FAISALABAD: Pakistan Textile Exporters Association (PTEA) has appealed for zero rating sales tax facility on export oriented textile chain.
In an appeal to the government here on Tuesday, Sohail Pasha, Chairman and Rizwan Riaz Saigal, Vice Chairman of the Association termed liquidity crunch as a stumbling block in export promotion.
They said that the textile industry is facing unprecedented crises since many years and consequently, sizeable textile capacity had been severely impaired.
Textile exports in quantity and value terms could not get the momentum and remained below the targets. Although, GSP Plus window has increased the flow of orders to textile sector but lack of necessary funds and energy shortage has adversely hit the outcomes of this duty waiver relief, they argued.
They urged zero rating of the entire value chain for the export is imperative to remain competitive in the international market.
They called for zero rated on the pattern of ‘no tax-no refund’ in order to get rid of numerous complaints and irregularities. Exporters have been dragged into the vicious circle of payment of sales tax and claiming refunds by incorporating changes in SRO 1125(I)/2011.
Initially, five export sectors were declared zero rated but subsequently the facility of zero rating has been gradually withdrawn.
SRO 1125(I)/2011 should be restored to its original status to declare textile export sector as zero rated, they emphasized.
They urged the Government for immediate payment of huge amounts of textile exporters stuck up in different refund regimes, PTEA Chairman said that finance is imperative to run the wheels of industry but without this, no one could even think to survive. Government should set its priorities right and accord preferential treatment to export oriented textile sector to fulfil the Premier’s vision of economic stability and prosperity.
He assured the commitment for revival of economy but conditioned it with payment of refund claims, uninterrupted supply of energy and implementation of zero rating sales tax regime. This would improve confidence of businessmen, attract new investment, generate more tax revenue, create new jobs and put the economy on track of sustainable economic development, he said.
