Union budget places sales tax relief decision for textile exports

07 Jun '05

2 min read

The decision has been taken in the federal budget in to provide sales tax relief to the exports of textile, which was urged by textile exporters fron since long period.

Council of Textile Associations (CTA) chairman Wajid Jawad informed that it would not only ease financial position of exporters, who had billions of rupees stuck up in sales tax refunds, but would also help to avoid corruption in the form of fraudulent refunds obtained on bogus reasons.

Jawad also appreciated the drop in import duty of accessories used in manufacturing plants for textile products. Jawad did not criticize of imposing of 0.1 percent withholding tax on bank amounts withdrawals, exceeding Rs25,000.

Towel Manufacturers, Chairman of Association (TMA) founder chairman described that the budget must be taken in optimistic way, especially reducing tax-free regime and decrease in the duty on machinery and raw materials, but he also stated that the budget would not help arrest rising inflation.

He urged the government not to base its plans on increased cotton production, which might not achieve the same level of production as was witnessed this year.

He claimed for the insufficient support of funds to allocate technical education in the country.

Sub-committee chairman Muhammad Iqbal Mangrani, Karachi Chamber of Commerce and Industry (KCCI) informed that export has lauded drop in customs duty on full chain of polyester yarn products used for blending with cotton in manufacturing of fabrics, and it will shoot up textile exports.

More Textiles News - Pakistan...