Chairman All Pakistan Textile Mills Association hails announcement of Zero Rated Regime for Textile Sector
Karachi, June 06, 2016 (PPI-OT):Mr. Tariq Saud, Chairman, All Pakistan Textile Mills Association (APTMA) hailed the Government specially the Finance Minister, Mr. Muhammad Ishaq Dar and Special Assistant to the Prime Minister on Revenue, Mr. Haroon Akhtar Khan for reinstating Zero Rated Regime for the Five Major Export Oriented Sectors including Textiles.
In a statement issued to the press, Chairman APTMA, Mr. Tariq Saud said that reintroduction of Zero Rating or No-Tax and No-Refund Regime for the Textile Sector which is the major export oriented sector and contributes more than 55% of foreign exchange earnings through exports is a positive step toward the restoration of viability of the ailing textile sector. He said that APTMA was demanding zero-rating regime and met the Finance Minister last Sunday in this regard and convinced him that the viability of textile industry is must for the economic growth of the country.
Chairman APTMA thanked the Federal Minister for Finance and Economic Affairs who heard the issues of the industry and he is sure that the government would implement it in true letter and spirit. He further appreciated reduction in export refinance rate by 0.5%.
Mr. Tariq Saud said that the government should announce a comprehensive package for the textile industry as its exports are under pressure both in quantity and value terms. He said the high cost of doing business and an unrealistic value of the local currency has also played a role in this regard. He said the textile industry was not able to utilize resources due losses to sustained earlier and a liquidity shortage now a major hurdle to produce exportable surplus.
He has urged the government to liquidate pending sales tax refunds by the end of July as promised by the Finance Minister so that funds, presently lying and unproductive and use it meeting working capital requirement of the industrial operations in the best National and Economic interest.
He further demanded complete withdrawal of Gas Infrastructure Development Cess (GIDC) and Electricity Surcharges from entire textile chain, provide 5% DLTL against Exports to all textile value chain to remove incidentals of taxes, cess, levies and duties on all textile exports and provision of Long Term Financing Facility to entire textile chain to attract fresh investment and BMR of the existing plants and machineries. To safeguard the domestic commerce from under invoiced imports, government should levy 15 percent Regulatory Duty on Synthetic Yarn and Fabrics under Chapter 55, he demanded.
For more information, contact:
All Pakistan Textile Mills Association
APTMA House, 44-A, Lalazar,
Molvi Tamizuddin Khan Road,
Karachi -74000, Pakistan.