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

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Lynda Kelly
Suominen Corporation

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search