Pakistan : Pakistan textile exporters unhappy over withholding tax

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Pakistan textile exporters unhappy over withholding tax

28
Feb '13

Apprehending that the withholding tax levy would have detrimental effects on their exports, the textile exporters of Pakistan have refuted the Federal Board of Revenue’s (FBR) decision to impose the same.

Since February 14, 2013, the Government has brought all the registered companies and exporters within the sales tax withholding regime, and they have to deduct 20 percent of the payable sales tax on all purchases.

Noting prior notice was given and the business community was taken into confidence before issuance of the statutory regulatory order (SRO) 98(I)/2013 in this regard, Pakistan Textile Exporters Association (PTEA) vice chairman Muhammad Asif said the move would not only raise their cost of doing business, but would also have an adverse impact on their cash flows and exports.

Mr. Asif demanded immediate rollback of the said order, in a PTEA statement.

He condemned the levy as a pure means to generate revenue by FBR, which is grappling to meet its exaggerated tax collection target of Pk Rs. 2.381 trillion.

FBR has been able to collect PK Rs. 1.03 trillion in taxes during the first seven months of the current fiscal, which is only 43 percent of the set target, he added.

According to PTEA, such measures would not enhance the revenues of the Government, but would only cause hindrances to smooth running of their businesses.

Mr. Asif said besides tax collection, FBR should also be delegated the duty of ensuring an enabling business environment through policies aimed at boosting trade, commerce, exports, industrialization and employment generation.

Fibre2fashion News Desk - India

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