Home / Knowledge / News / Textiles / Textile bodies vehemently oppose 17% sales tax
Textile bodies vehemently oppose 17% sales tax
Mar '11
An ordinance, which has imposed a 17 percent general sales tax has been vehemently opposed by the textile and value-added textile sector in Pakistan. To add to the woes of the textile industry, the zero-rating facility available for export-oriented units too has been removed, along with.

The 17 percent GST would be imposed on the sale of plants, machinery and equipment and domestic sales of export-oriented items like textiles and carpets.

However, Mr Ijaz Khokhar, Chairman - Pakistan Readymade Garments Association, who spoke to fibre2fashion, clarified that, “Zero rating for the manufacturer cum exporter is still available. The difference being that, the manufacturer who sells his goods locally will pay the tax on their local sales”.

He further informed by saying, “If a manufacturer cum exporter is importing raw materials for export purpose there is no change in the system. He is still within the same zero rating. Only those exporters, who also sell in the domestic markets, will have to pay 17 percent GST”.

“Our domestic consumers and economy is not very strong and this tax would be an extra addition and a burden on our local people. We have suggested that, the govt should start off with just 4 percent GST and gradually increase it.

“The zero-percent tax on import of machinery and parts has been withdrawn. Since we are importing the latest technology to stay competitive, we have recommended the government to restore the zero rating on plant and machinery imports”, he added by saying.

Mr Zubair Motiwala, Chairman - Council of All Pakistan Textiles Associations (CAPTA) also reiterated the statement given by Mr Ijaz Khokhar. He said, “There is no sales tax on the exports of textiles, it is only for local sales, which was not there earlier”.

“The government has decided to withdraw zero-rating facility on 3-4 sectors, including the textile industry. This will make the textile sector uncompetitive and so we have requested that the facility should be restored”.

Fibre2fashion News Desk - India

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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:
May 2017

May 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