Home / Knowledge / News / Textiles / Pakistan textile exporters seek restoration of zero-rating
Pakistan textile exporters seek restoration of zero-rating
20
Jan '14
Textile exporters from Pakistan have expressed disappointment on the withdrawal of zero-rating regime for the export-oriented sector stating that the withdrawal is adversely affecting exports at a time when huge amounts of Sales Tax Refunds were already trapped with the Federal Board of Revenue (FBR) and exporters were facing liquidity crunch.
 
In a letter to Federal Secretary of Textile Industry Rukhsana Shah, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) senior vice chairman Jawwad Ahmed Chaudhary requested the Government to look at the export policies of India, China and Bangladesh, where the exporters are facilitated through export-friendly policies, reports the Nation.
 
The FBR should develop an export-friendly policy for the textile exporters of the country, instead of creating obstacles for them, he added.
 
The PRGMEA official expressed that due to energy shortfall, major chunk of finance has been diverted to develop energy infrastructure that squeezed financial streams breading cash flow jerks, which has been even more intensified because of delaying refund of sales tax.
 
Pakistan’s apparel export volume can be escalated from the existing US$ 8 billion if the Government takes all stakeholders on board and finalizes export policies with their consultations, he added.
 
On behalf of the textile industry, the PRGMEA official appealed to the authorities to include representatives of export-oriented industries for evolving an effective and result-oriented trade and export policy that could help achieve desired goal of increasing exports.
 
Zero-rating is a term relating to value added tax (VAT), and it refers to goods which are taxable but at zero rate. The significance of this rating is that businesses selling such goods may claim back their input tax, i.e., the VAT they have paid to their suppliers.
 
Earlier this week, in a meeting with the Federal Secretary of Textile Industry at the Pakistan Hosiery Manufacturers and Exports Association (PHMA) house, industry leaders urged Ms. Rukhsana Shah to bring in necessary reforms and give special status to export-oriented industry, in order to benefit from the Generalized System of Preferences Plus (GSP+) status granted by the European Union (EU).
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Lynda Kelly
Suominen Corporation

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
January 2017

January 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