Home / Knowledge / News / Textiles / PTEA opposes sales tax increase & changes in tax regime
PTEA opposes sales tax increase & changes in tax regime
18
Feb '14
Pakistan Textile Exporters Association (PTEA) has strongly opposed the proposed increase in sales tax and changes in tax regime as this will negatively impact the textile exports and would cause to further squeeze the industrial activities.
 
PTEA Chairman Sheikh Ilyas Mahmood and Vice-Chairman Adil Tahir said, in a statement here today, that this move would adversely affect exports at a time when huge amount of sales tax refunds are already stuck up with the FBR and exporters are facing liquidity crunch and such changes in the tax regime would add fuel to the fire.
 
Textile export sector has already been reeling under severe energy shortage, hike in tariffs, squeezed industrial activities and high cost of production, they said. 
 
There will be no level playing-field to honest taxpayers instead it would only result in blockade of their capital in the shape of refunds, increase cost of doing business and shrink export turnover. They added that in the prevailing economic conditions, rising cost of production is the core issue for textile exporters and this increase in sales tax would have a negative impact on national economy and exports of the country. 
 
FBR should make efforts to bring the retail and untaxed sector into the tax net to enhance its revenue collection, instead of further taxing the ailing textile sector, they suggested.
 
Sheikh Ilyas was of the view that Pakistan is losing its ground and competitiveness against regional countries like China, India, Bangladesh, and Sri Lanka. Export sector must be facilitated to earn foreign exchange for the country and it should not be used for revenue collection as is done all over the world. 
 
FBR should evolve export-friendly policies as with increased exports they can raise revenue and country will also get foreign exchange and people will get employment,” he said.
 
FBR is not taking stakeholders on board and instead of widening tax net adopted traditional way to squeeze existing tax payers. Any move to add taxes to export sector would be a detrimental to the economy, he added.
 
Vice Chairman Adil Tahir said that at a time when textile industry needed export friendly-policies and conducive environment to reap maximum benefits of GSP plus, the efforts to retard the economic growth has been initiated. He said that on one hand, billions of rupees of exporters are stuck up with FBR in different refund regimes and on the other hand FBR is putting more burdens of tax on the taxpayers.
 
PTEA office bearers urged the Government to drop proposal for increase in sales tax and demanded to re-continue the zero rating scheme in the better interest of the industry. This would help to increase country’s exports and also attracts the industrial investment.
 

Pakistan Textile Exporters Association

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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