Home / Knowledge / News / Textiles / APTMA demands continuity of zero rate tax regimes for textile industry
APTMA demands continuity of zero rate tax regimes for textile industry
15
Nov '10
Acting Chairman All Pakistan Textile Mills Association (APTMA) Shahzad Ali Khan has urged continuity of zero rate tax regime for textile industry.

In a letter to the Standing Committee of National Assembly on Finance, he said the industry apprehends serious adverse implications of the withdrawal of exemption of zero-rating of the textile industry under the Reformed General Sales Tax (RGST).

Shahzad said 85 percent of textile produce is exported in one or the other form, with only 15 percent left for local consumption. Therefore, zero rating of the entire value chain from ginning to garmenting for the export and local supply is imperative to remain competitive in the international market, he added.

He said the petition is based on premise of peculiar fiber procurement processes of the spinning industry, causative liquidity crunch due to inadequate bank limits and unregistered sub-sectors of the textile value chain.

The Acting Chairman APTMA reminded that previous imposition of 15 percent sales tax on industry proved a failure and the government had no option but to zero rate the export-oriented industry after realizing that refunds were far in excess of collection of the sales tax.

He said the textile industry again fears a circular debt of Rs100 billion in the form of stuck up refunds with the withdrawal of tax exemption. According to him, unprecedented increase in cotton prices has already crippled textile industry. Therefore, it cannot sustain additional liquidity requirement of 15 percent under the RGST. Banks are reluctant to finance textile industry to procure swelling cotton prices and the SBP regulations do not allow financing of sales tax part, he added.

Shahzad also pointed out that obtaining adjustments/refunds against sales, as the spinning industry procures cotton in three months and consumes it during twelve months to manufacture and sell yarn to the weaving and knitting industry.

He added that textile spinning industry already complying with the requirement of filing returns under the existing regime and would remain so even under the RGST. However, being an important chain of textile exports, it would not yield enough revenue to the exchequer. Therefore, it would merely be an exercise of depositing sales tax to the government and running from pillar to post for recovery of refunds.

Acting Chairman APTMA said the local supply of textiles and articles thereof should be zero rated in RGST in line with the current Sales Tax Act 1990. Further, he said, domestic supply of all inputs and services used in textile industry should be zero rated to avoid refunds and flying invoices as 80 percent of textile products are being exported in one form or the other.

All Pakistan Textile Mills Association (APTMA)


Must ReadView All

Courtesy: Fashion Revolution/Fashion Transparency Index

Fashion | On 23rd Apr 2018

Top global fashion brands now more transparent

Fashion Revolution’s Fashion Transparency Index 2018 reveals Adidas...

Japan’s clothing imports up 4% in fiscal 2017

Apparel/Garments | On 23rd Apr 2018

Japan’s clothing imports up 4% in fiscal 2017

Japan’s imports of clothing and accessories increased by 4 per cent...

PVH, WWF tie up to protect water bodies in Ethiopia, India

Apparel/Garments | On 23rd Apr 2018

PVH, WWF tie up to protect water bodies in Ethiopia, India

PVH Corp , parent company of brands like Tommy Hilfiger, Calvin...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

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

Steve Cole
Xerium Technologies

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra
Huemn

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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

Leave your Comments


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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