Home / Knowledge / News / Textiles / Pakistan FTO to discuss zero-rating for textiles with FBR
Pakistan FTO to discuss zero-rating for textiles with FBR
10
Sep '13
Pakistan Federal Tax Ombudsman (FTO) Abdul Rauf Chaudhry has assured the textile entrepreneurs in the country of taking up the issue of zero rating for the sector with Finance Minister and Federal Board of Revenue (FBR) Chairman Tariq Bajwa.
 
During a meeting with textile exporters from knitwear, hosiery, bedwear and cotton garment segment, Mr. Chaudhry said that sales tax levy on local sales of textiles and not on exports does not make a sense, especially when 90 percent of the textile goods are exported, necessitating refunding of sums so collected.
 
He also agreed with the exporters that even a nominal two percent sales tax levy on zero-rated sectors, automatically requires those industries to submit full accounts and other requisite details.
 
Stating that the textile industry is the country’s largest foreign exchange earning sector, Mr. Chaudhry said the textile entrepreneurs should be allowed to use all their resources to the optimum level, so that they can compete with regional competitors like India and Bangladesh. If the tax and refund issues persist it would result in contraction of exports and widening of trade gap as well as foreign exchange crisis.
 
Noting that around 80-90 percent cases dealt by FTO are decided in favour of textile entrepreneurs, he said that upon issuance of Refund Payment Order (RPOs) by FTO, the concerned department has to immediately release the payment, but if it fails to make such payment, exporters would have to bear the total cost.
 
Condemning the working of the revenue departments and piling up of refund and rebate cases with FTO, Mr. Chaudhry said in order to save time, it has been planned to implement the decision of FTO on one particular case to all such similar cases. 
 
FTO offices would be opened in Faisalabad and Peshawar and the number of advisors in Lahore and Karachi would be doubled to ensure speedy processing of such cases, he added.
 
However, on the issue of blocked refunds of sales tax on services collected by the Sindh Revenue Board (SRB), he said that FBR would have to settle the refund claims by making internal adjustments. 
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search