Interviews
Textile sector unanimously reject withdrawal of zero rate regime under RGST
01 Dec '10
4 min read
Zulfiqar Ch from All Pakistan Textile Processing Mills Association said no mechanism of local sales is defined and also it is not clear how refunds would be paid.
Shabbir Ahmed from Bedwear Association said industry should go for legal remedy well before the imposition of the RGST.
Akber Sh from APTMA said RGST would add to inflation, Rs500 billion will stuck up and about 100 mills are likely to close down because of liquidity constraints. He said government should declare cotton as agriculture product, otherwise RGST will create distortions, flying invoices, leasing arrangements besides encourage smuggling Pervez Hanif from PRGMEA said the government has already tested GST on industry and no need to repeat it.
The participants said the RGST may be imposed on the retail consumption of textile goods instead of its manufacturing value chain, which is mainly fragmanted, independent of each other and multi-activity till the final produce. They said 80 percent of which is exported in one form or the other.
Shabbir Ahmed from Bedwear Association said industry should go for legal remedy well before the imposition of the RGST.
Akber Sh from APTMA said RGST would add to inflation, Rs500 billion will stuck up and about 100 mills are likely to close down because of liquidity constraints. He said government should declare cotton as agriculture product, otherwise RGST will create distortions, flying invoices, leasing arrangements besides encourage smuggling Pervez Hanif from PRGMEA said the government has already tested GST on industry and no need to repeat it.
The participants said the RGST may be imposed on the retail consumption of textile goods instead of its manufacturing value chain, which is mainly fragmanted, independent of each other and multi-activity till the final produce. They said 80 percent of which is exported in one form or the other.
All Pakistan Textile Processing Mills association (APTMA)
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