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PTEA for zero-rating sales tax on exports
27 May '15
1 min read
The textile industry in Pakistan’s Punjab province, reeling under rising cost of doing business and energy shortages, has urged the government to restore the industry’s zero-rating status, according to Pakistani media reports.
In a statement, the Pakistan textile exporters association (PTEA) said that tampering with zero-rating facility had already resulted in billions of rupees in unpaid duties and tax refunds, causing cash crunch in the industry.
“The textile industry is facing unprecedented crisis for many years, and now because of liquidity crunch a sizeable portion of manufacturing capacity has severely been impaired,” said PTEA chairman Sohail Pasha.
“The increase in sales tax will bankrupt many manufacturers,” he lamented, advising that the government should make arrangements for an early refund of their stuck-up claims.
The all Pakistan textile mills association (APTMA) chairman SM Tanveer also warned the government against burdening the export industry with more taxes.
He advised the government to use the growth potential of the industry for creating jobs and not for collecting taxes at the cost of its viability. (SH)
In a statement, the Pakistan textile exporters association (PTEA) said that tampering with zero-rating facility had already resulted in billions of rupees in unpaid duties and tax refunds, causing cash crunch in the industry.
“The textile industry is facing unprecedented crisis for many years, and now because of liquidity crunch a sizeable portion of manufacturing capacity has severely been impaired,” said PTEA chairman Sohail Pasha.
“The increase in sales tax will bankrupt many manufacturers,” he lamented, advising that the government should make arrangements for an early refund of their stuck-up claims.
The all Pakistan textile mills association (APTMA) chairman SM Tanveer also warned the government against burdening the export industry with more taxes.
He advised the government to use the growth potential of the industry for creating jobs and not for collecting taxes at the cost of its viability. (SH)
Fibre2fashion News Desk – India
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