The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has called for giving special status to export-oriented value-added textile industry allowing it zero rating facility to boost new investment and revive economic growth.
“The value-added textile sector should be given special status by separating it from other textile chains as it is generating more employment and more revenue.”
PRGMEA central chairman Ijaz Khokhar, and vice chairman, Malik Naseer, in a joint statement, said that more than 30% working capital of textile sector was stuck-up under refund regime, because several incentives announced in previous budget 2014-15, including ‘Rationalization of Refund Regime’ and ‘Complete Settlement of all Outstanding Refund Claims till 2014’ could not be implemented so far.
Pakistan textile policy for 2009-14 with outlay of PKR 188 billion could be implemented only 15%, Ijaz Khokhar said and added that textile policy 2014-19 with total outlay of PKR 64 Billion was announced with a long delay and its notification was not issued yet.
‘No tax-no refund’ formula should be applied on value-added textile chain, including it in zero-rated regime in order to get rid of liquidity crunch.
Ijaz Khokhar suggested the FBR to evolve a mechanism to eliminate liquidity problems of refund claimants and frivolous litigation pertaining to refunds. “Sales tax refund should be processed in minimum possible time in a transparent manner and the FBR should streamline the entire refund verification and sanctioning process to facilitate the whole export-oriented sector.”