The Woollen Mills Owners (WMO) have demanded the imposition of 15 percent General Sales Tax (GST) on the import of the raw wool on the unregistered wool sector, while the registered sector would be given a zero rate sales tax on import of the raw wool.
"80 percent wool is being imported by the unregistered wool sector, which is paying only a 2 percent turn over tax on this import, while the 20 percent is being imported by registered sector which is paying GST and many other taxes to the government", said Hussain Ahmed Ozgen, Executive Director of Rahat Woollen Mills Rawalpindi, here on Thursday.
He told Business Recorder that government should look into the matter and give sales tax rebate to registered sector only while the unregistered sector which is importing 80 percent of the total wool should be levied 15 percent GST on the import.
"The registered sector in spite of zero rated import facility is paying 15 percent as GST as value-added products, while the unregistered sector is paying only 2 percent as turn over tax", he added.
Government in order to save the revenue loss as a result of the zero rated facility to entire wool sector, should consider the demand and impose 15 percent GST on unregistered sector, he said.
Hussain Ozgen, who is also president of Rawalpindi Chamber of Commerce and Industry (RCCI) said that as a result of the unjust policies of the government Woollen Mills in Pakistan are facing a crucial time and mostly mills are preferring to close down their operation.
He also demanded complete ban on the export of raw timber and said that with the zero rated GST on raw timber the country will face acute crisis and the timber industry will ruin. "Government should permit the export of timber of industrial importance on the zero rated GST", he added.
He called upon the government to announce a comprehensive package for the forest related industries in order to encourage the export of the wooden products to foreign countries.
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