LAHORE: Deputy Commissioner, Zone VII, Corporate Regional Tax Office (CRTO), Ghazala Nasir Siddique has said that textile industry has the potential to spur overall growth and development in the country.
Talking to Customs Today, she said that potentials of textile and garment industry should be exploited as it has contributed significantly in terms of trade, GDP and employment in several other countries.
“Such industries provide opportunities to diversify exportable items and expand manufactured sector,” she said. The contribution of textile sector is up to 5 percent in Sri Lanka, 12 percent in Cambodia and 15 percent in Pakistan, she added.
Deputy Commissioner said that she is currently conducting the income tax, withholding and sales tax audit of cases of textile sector, selected by the FBR as well as desk audit of zero rated sectors.
She told Customs Today that up to December, 2017 her zone collected Rs. 1077million under the jurisdiction of corporate and non-corporate cases of zero rated sectors against the target of 535 million, which is average increase of 70 % from the last year of 2015/2016.
She told Ministry of Textile Industry which has suggested revised Prime Minister’s Package of Incentives for Exporters (textile sector) under which 50 percent of the rate of drawback of local taxes and levies shall be provided without condition of increment. It seems that the government is determined to implement the reformed General Sales Tax (GST) which is just a nomenclature change for value-added tax, on the textile sector.
She added that we must be committed to identify and analyze issues and problems which are being faced by Pakistan in the area of textile sector of the economy. In order to deal with internal challenges, we must take into account what kind of scheme and action Pakistan should adopt to strengthen this Sector which is also a backbone of Pakistan economy.
The major threat to Pakistan’s textile sector are keeping up its competitive place against its competitor place and keep its target market as well as improve its share in whole world export. There are some issues which directly or indirectly harmful on textile sector. Issues are energy crises in form of fuel, electricity, lack of skills, obsolete technology usage and inefficient production, she added.
Reply a question she added that after improving external and internal challenges of textile sector at government level, we can improve the taxation level of textiles, which is very important part of Pakistan‘s economy. This sector requires serious attention by formulating such policies and plans to standardize the taxation by taking textiles out of the quagmire of refunds also.
