Chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) - North Zone – Chaudhry Salamat Ali, has cautioned that imposition of the Reformed General Sales Tax (RGST) may adversely affect the country's value-added textile sector, which is badly hit by the recession.
While insisting on the RGST bill to be highly complicated than the present GST, he requested the government for not imposing the same, as according to him imposition of this bill would force the labour intensive and export-oriented value added sector to a defensive position.
Textile exporters in the country have strongly criticized the government for constantly neglecting their reservations about the imposition of the RGST and the continuance of the zero rate facility, he said. He also accepted that the government has still not paid the outstanding refund claims worth billions of rupees.
He also stated that, the government has withheld millions of rupees which belong to the exporters under export rebate. Right now, the government offers export rebate at the rate of about one percent. In the current situation it seems to be impossible for FBR to easily pay the 15 percent of GST refunds.
The textile exporters, in order to make up for this deficit in the working capital may now be required to obtain finances from bank so as to fund their exports which attract an equally rising mark-up rate. This would lead the value-added textile sector, already troubled by mounting power bills and rise in prices of raw materials, on the brink of a complete crash. All these circumstances have also laid an adverse effect on the ongoing businesses in the sector.
Fibre2fashion News Desk-India
20240830145952.gif)
20240925092649.png)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
