LAHORE: The textile industry has urged the government to continue the sales tax zero-rating facility to five export-oriented sectors in the upcoming federal budget 2017-18, besides speeding up the disbursement of drawbacks under the PM export package.
The major textile bodies including All Pakistan Textile Mills Association and Pakistan Hosiery Manufacturers Association have said that any move to withdraw zero rating regime for the five exporting sectors would tantamount to devastating impact on the growth of textile industry in Pakistan.
PHMA Chairman Adil Butt criticised the Federal Board of Revenue’s (FBR) proposal to withdraw zero-rated tax regime granted last year after a long debate and hectic efforts of the exporting industry.
“FBR wants to end the facility just to make its balance sheet correct. The balance sheet might show enhanced revenue collection but the industry would be collapsed if the ‘no tax no refund’ system is withdrawn, which is already not being implemented properly,” he lamented.
APTMA Chairman Aamir Fayyaz has also urged the government to continue with zero-rating regime in next budget to revive industrial viability and encourage investment. He said Finance Minister Ishaq Dar had introduced this regime after threadbare discussion – especially, to help the five export-oriented sectors that had become uncompetitive in the region due to escalating cost of doing business.
