Home / Knowledge / News / Textiles / RGST facing opposition from five zero-rated export sectors
RGST facing opposition from five zero-rated export sectors
Dec '10
The government's decision of passing the Reformed General Sales Tax (RGST) Bill 2010, from the Parliament, has caused the representatives of the five zero-rated export sectors to contest the same. As and when the RGST becomes effective, it would give the FBR officials a free rein to raid any of the exporting units they like, said Zubair Motiwala – Chairman of the Council of All Pakistan Textile Associations (Capta), while speaking at a joint press conference, of the five zero-rated exporting sectors, held at PHMA house.

The value-added textile sector, surgical instruments manufacturing sector, leather and carpet manufacturing sector as well as sports goods producing sector have been included in the zero-rated exporting sectors.

The Capta Chairman expressed disbelief about the tax refund system put forward by the government under the RGST, which is likely to become effective as soon as the RGST bill passed by the Parliament takes the form of a law. He said that, under the new system, 90 percent of the capital of the export units would remain blocked with the tax collectors as refunds.

He contended that, the government failed to fulfil the promises that it had made during the past six months regarding the RGST, and is now asserting that the zero-rated regime too would continue to back the five sectors. Further, while voicing his disbelief, he said that the government is unreasonably adamant on introducing the new software which still has not been tested or the computerised system for RGST refunds.

Meanwhile, the Chairman of the Pakistan Carpet Manufacturers and Exporters Association, Tanveer Muzaffar, also appealed the government to extend the 2005's system of "no payment and no return". He, too, added that imposition of the proposed tax system would cause many of the ongoing businesses to shut down.

Further, the Co-ordinator of the Value-added Textile Forum, M. Javed Bilwani, has warned that if the RGST is imposed then all the zero-rated exporting sectors would resort to strike.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Textiles | On 27th Jun 2017

Barcelona’s Unitin develops recycled Indigo yarns

Unitin, a trademark of Industrias Morera SA and a leading textile...

Information Technology | On 27th Jun 2017

ThreadSol to bring fabric solutions to Thailand

ThreadSol, an enterprise material management provider for the sewn...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Manuj Terapanthi

Transparent supply chain and fair trade will boost sustainable market

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Silke Brand-Kirsch
Schlegel und Partner

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

Mark Paterson
Technical Absorbents Ltd

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

Marcel Alberts

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


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