Home / Knowledge / News / Textiles / RGST in textile sector can create debt cycle – APTMA
RGST in textile sector can create debt cycle – APTMA
Oct '10
All Pakistan Textile Mills Association (APTMA) recently said that, it is apprehending a one more debt cycle of Rs. 100 billion, in event of cessation of zero rating regime for the textile sector.

APTMA representatives while narrating the adversities following RGST said that, ending of the zero rating regime for textiles may lead the textile sector and exports to a snapping point.

The zero rating regime was made applicable to all segments of textile sector through the Finance Act, 2005, in order to uplift the export-oriented textile sector, and to circumvent issuance of fake or vague invoices, for which the tax department was paying refunds in excess of the tax collected.

Assessment put forward by the industry experts suggests that, applying RGST regime to the textile chain would beget an immediate liquidity crisis, as Rs. 100 billion paid by the sector by way of advance tax would get entangled with the Sales Tax Department, and may result in another debt cycle.

Applicability of RGST regime may further add to the troubles of already ailing industry loaded with heavy interest rates, deficit and mounting prices of cotton, thus hampering overall growth of the industry.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Lenzing

Textiles | On 25th Jun 2018

Lenzing launches Veocel nonwoven speciality brand

Leading fibre company, the Lenzing Group has unveiled Veocel, the new ...

Interviews View All

Deepak Jain

We are using Facebook and Instagram to promote ourselves

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Urmil Arya

Sushila International, a well established textile organisation established ...

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Eric Scholler

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

Johan Berlin
InvestKonsult Sweden AB

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Karan Arora
Karan Arora

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

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

news category

Related Categories:

Advanced Search