Pakistan Textile Exporters Association (PTEA) on Thursday expressed concern over the proposed imposition of 2% non-adjustable/non-refundable Sales Tax on each stage of textile sector abolishing the sales tax zero rating regime.
In a statement, Chairman Asghar Ali and Vice Chairman Muhammad Asif PETA termed it as the last nail in the coffin of the textile sector.
“Such unrealistic decisions would adversely affect textile exports of the country at a time when industrial sector was already in hot waters due to the energy crisis”, they added
“The changes in the tax regime would add fire to fuel, endangering survival of trade and industry in the country where huge amounts of sales tax refunds were already stuck up with FBR”, they said.
“In the prevailing economic conditions, rising cost of production was the core issue for textile exporters and this move of the sales tax zero rating regime on exports would have a negative impact on national economy and exports of the country”, they added.
Chairman PTEA Asghar Ali was of the view that textile export volume could be escalated to USD 20 billion from the existing worth of USD 13 billion if the government takes all stakeholders on board and finalizes an export policy with their consultations.
PTEA office bearers urged the Government to drop proposal for levy of 2% un-adjustable sales tax and immediately withdraw the SRO 98(I)/2013. They further demanded to continue the current zero rating scheme in the interest of the industry.