Home / Knowledge / News / Textiles / Appeal for zero-rating on domestic sale of cotton & fabrics
Appeal for zero-rating on domestic sale of cotton & fabrics
08
Dec '10
Though the textile industry has accepted the Reformed General Sales Tax (RGST) on the domestic sale of knitwear, bed-wear, apparels, towels and such other made-ups but it has urged the government to permit zero-rating on the domestic sale of cotton, yarn, other fabrics, dyed fabrics and processed fabrics.

According to the information provided by the All Pakistan Textile Mills Association, the textile industry has a share of 8.5% in the economy of Pakistan; it provides employment to 38% of the labor force involved in the production sector, direct employment to around 3.5 million people and indirect employment to 10 million people in the nation.

The tax realization from the textile value chain is likely to stand at Rs 25 billion and the net non-refunded deposits is expected to be Rs 391 billion as per the estimation of APTMA. The RGST payment from the industry is anticipated to stand at Rs 518 billion. Of this, the spinning sector is likely to contribute Rs 213.408 billion, the weaving sector Rs 116.976 billion, the processing sector Rs 111.633 billion while Rs 37.339 billion and Rs 39.558 billion are likely to come from the bed-wear, towels, made-ups and the apparels as well as knitwear sector, respectively.

APTMA appealed the government to permit zero-rating on the domestic sale of textile products as well as other articles in RGST as has been done in case of the current Sales Tax, 1990. Zero-rating should be permitted on all inputs and services used in the textile sector to avoid refunds and formal requests for payments since 80% of the textile commodities are exported in one or the other form.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search