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Value-added textile sector likely to fail in absence of zero-rated facility
04 Dec '10
1 min read
Wasim Latif, Chairman and Adele Manzoor Ellahi, Vice Chairman of Pakistan Textile Exporters Association have warned that, if the zero rated facility clause does not find a place in the proposed Reformed General Sales Tax regime which is soon to be placed before the national legislature, it would cause failure of the country's value added textile industry.
They stated that, so far the value-added sector was allowed the zero-rated facility, and it was free from the problems of the GST. The facility was made available after due diligence and extensive study of the procedural impediments and complexities of the Sales Tax refund regime. If the facility is withdrawn, it would cause the industry to suffer a series of difficulties because dealing with the RGST complexities will consume a lot of time, money and energy.
The entire practice of first collecting the Sales Tax and then refunding it was a complete waste of time and energy. Besides, it was prone to corruption, they said.
They stated that, so far the value-added sector was allowed the zero-rated facility, and it was free from the problems of the GST. The facility was made available after due diligence and extensive study of the procedural impediments and complexities of the Sales Tax refund regime. If the facility is withdrawn, it would cause the industry to suffer a series of difficulties because dealing with the RGST complexities will consume a lot of time, money and energy.
The entire practice of first collecting the Sales Tax and then refunding it was a complete waste of time and energy. Besides, it was prone to corruption, they said.
Fibre2fashion News Desk - India
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