Home / Knowledge / News / Textiles / Pakistan govt allocates Rs 202 mn for textile in PSDP

Pakistan govt allocates Rs 202 mn for textile in PSDP

12
Jun '19
Pic: PID
Pic: PID
For the promotion of trade and commerce in the country, the Government of Pakistan has allocated a sum of Rs 202.828 million for Textiles Industry Division in one on-going and two new schemes under Public Sector Development Programme (PSDP) 2019-20. Exemption of duty on accessories and parts of textile machinery was also announced in the 2019-20 Budget.

For the financial year beginning July 1, 2019, the government has allocated Rs 100 million for setting up 1,000 industrial stitching units across Pakistan in two on-going schemes in PSDP-2019-20.

Another sum of Rs 2.828 million has been earmarked for Faisalabad garments city training centre, to be set up in Faisalabad.

“Textile sector is important, and government’s policy is to support this sector with exemption of duty on various accessories and parts of textile machinery. Similarly, duty on elastomeric yarn and nonwoven fabric is to be reduced,” minister of state for revenue Hammad Azhar said in his Budget speech.

Under the header ‘Streamlining SRO 1125(I)/2011 Regime’, the minister said the SRO provides for zero-rate of sales tax on inputs and products of five export-oriented sectors i.e. textile, leather, carpets, sports goods and surgical goods. The objective was to resolve delay in refund payments. However, zero-rating has created loophole and the benefit is being availed by unintended beneficiaries / non-exporters. Reduced rates for finished goods are also harming revenues. To streamline and prevent revenue leakage the minister proposed that SRO 1125 be rescinded, thus restoring standard rate of 17 per cent.

The minister also proposed that the rate of sales tax on local supplies of finished articles of textile and leather and finished fabric may be raised to 17 per cent. However, retailers opting for real time reporting shall be given a relaxation of rate which shall then be charged at 15 per cent.

He also proposed automation of refund of sales tax to these sectors, thus ensuring that the sales tax paid on inputs is immediately refunded.

Ginned cotton which is presently exempt under SRO is proposed to be subjected to reduced rate of 10 per cent.

Azhar told the Parliament that the government has been successful in securing duty-free access from China for 313 items, leading to higher volumes of exports. Knitwear exports increased 16 per cent, while readymade garments exports rose 29 per cent, he said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Bangla trade bodies happy with proposed budget

Textiles | On 17th Jun 2019

Bangla trade bodies happy with proposed budget

Most trade bodies and business associations in Bangladesh are...

Pak PHMA rejects 17% sales tax on five key export sectors

Textiles | On 17th Jun 2019

Pak PHMA rejects 17% sales tax on five key export sectors

The Pakistan Hosiery Manufacturers Association has rejected 17 per...

Pic: Coresight Research

Information Technology | On 17th Jun 2019

Chinese consumers are more digital than westerners

Chinese consumers have higher expectations than ever before: they are ...

Interviews View All

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Top executives, Textile industry

Top executives
Textile industry

RoSCTL is need of the hour

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Mario Ploner,

Mario Ploner

<div>Italian company Tecnomeccanica Biellese specialises in planning and...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

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

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

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

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

Leave your Comments


June 2019

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

news category


Related Categories:

Advanced Search