Home / Knowledge / News / Textiles / Sales tax of 3% on fabrics irks Pakistan textile sector
Sales tax of 3% on fabrics irks Pakistan textile sector
14
Oct '13
Pakistan’s Federal Board of Revenue’s (FBR) recent move of subjecting all import and supplies of all fabrics, irrespective of it being finished or raw fabric, to uniform sales tax (ST) of three percent has met severe criticism from the value-added textile industry of the country.
 
In a joint statement, the leaders of value-added textile industry said the entire textile chain right from yarn purchase to dyeing and other stages by exporters is already enduring two percent sales tax, and such uniform levy on fabrics would further hit the already ailing sector.
 
The textile industry is already suffering due to large amount of pending dues of sales tax and custom duty refund and rebate, as well as the Federal Excise Duty (FED) and Duty Drawback of Local Taxes and Levies (DLTL) claims, which have caused severe liquidity crisis, preventing the exporters from honouring their export obligations. 
 
The Increased sales tax would further intensify the liquidity crisis, the statement said.
 
The industry leaders said that though fabric meant for domestic use may be taxed at three percent, finished fabric for producing garment for export purpose should be subjected to a tax of only two percent.
 
Also, they emphasized on sustaining the zero-rated status for value-added textile exports and subjecting the sales of finished fabric to producer-cum-exporters to a levy of two percent, as it makes no sense in collecting tax to refund back the same.
 
The statement was jointly issued by Pakistan Denim Manufacturers & Exporters Association Chairman Dr. Mirza Ikhtiar Baig, Pakistan Hosiery Manufacturers and Exporters Association Chairman Irfan Z Bawany, Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association Chairman Khwaja Mohammad Usman, Pakistan Apparel Forum Chairman M Jawed Bilwani, Pakistan Knitwear and Sweater Exporters Association Chairman Kamran Chandna and Readymade Garments Manufacturers and Exporters Association Chairman Arshad Aziz.
 

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

View of YiwuTex 2016; Courtesy: YiwuTex

Textiles | On 28th Feb 2017

Smart knitting system to grace 18th YiwuTex 2017

The thematic functional knitting machinery zone at the 18th YiwuTex...

Textiles | On 28th Feb 2017

Over 100 exhibitors expected to participate in IATF

Over a 100 exhibitors are expected to showcase their products at the...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Larry L Kinn
Suominen Corporation

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

Pranav Mishra
Huemn

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search