Pak panel wants fair solution on zero-rated regime issue

02 Jul '19

2 min read

Pic: Shutter Stock

The Pakistan national assembly’s standing committee on commerce and textile recently advised the commerce ministry to find some solution of the issue of zero-rated regime of five export sectors. Committee chairman Naveed Qamar advised advisor to the prime minister on commerce and textile Razzak Dawood to find some middle ground beneficial for both sides.

Qamar said a solution satisfying both the government and the industry should be suggested to help continue growth and stability in the textile sector, according to Pakistani media reports.

Earlier, the representatives of five zero-rated exports-oriented sectors--textile, leather, sport goods, surgical equipment and carpets—had requested continuation of the zero-rated tax regime for these sectors. The total exports of these five sectors were worth $23.221 million in fiscal 2017-18.

Meanwhile, Dawood said the Statutory Regulatory Orders (SROs) of five zero-rated export sectors were removed on the advice of the Federal Board of Revenue (FBR) and the finance division. FBR feels that the sale tax exempted raw material is being used in sectors that are not part of the zero rating, he said.

Dawood said FBR had also ensured that there would be no difficulty in payment of tax refunds and it would announce a complete plan for such payments on the pattern of China and Bangladesh to minimise the period of refund payment.

The government had introduced the zero-rating facility for the export-oriented industries in 2005. (DS)

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