Towel Manufacturers Association of Pakistan (TMAP) welcomed growth oriented budget 2016-2017 for industrial and export sector. We Towel Manufacturers Association of Pakistan congratulated Prime Minister of Pakistan and his financial team for accepting long awaited demand of value-added Textile Sector declaring five Export Sector Zero Rated from 1st July 2016. This will go a long way in increasing country's textile exports in future.
Besides, following incentives announced in the Federal Budget 2016-2017 are also laudable which will definitely improve country's economy in the years to come. 1. Increase in turn over threshold for cottage industry from Rs 5 Million to Rs 10 Million is the right step towards right direction. Because, SME's considered world wide as back bone for Industrial Sector. It will surely give boost to cottage industry of the country.
2. Since the present Government came into power it is stressing development of under developed areas of the country. In the recent Budget Government has given exemption to industries to be established in Gawadar Free Zone for 23 years from Sales Tax and Federal Excise Duty. This will give boost to industries in Gawadar Free Zone.
3. In Federal Budget 2016-2017 Government has also given relief on education expenses to low income group individual having taxable income less than Rs 1 Million will enjoy tax relief equal to 5 percent of school fee up-to Rs 60,000 per annum this decision of the government is appreciable as well.
4. In Federal Budget 2016-2017 Taxation of Property income has been show in a separate block of income under this head will not be clubbed with income from other sources. Senior citizen and widows whose dependence is only on rental income will be benefited from this step. However Tax on rental income increase than previous policy to make need it in line with old taxation system. Besides, the following announcements in Federal Budget need to revisit as it will hurt to concerned sector. 1. Exclusion of 2nd hand and worn clothing from further tax levy. This will lead to dumping of imported goods in the market which will naturally hurt local industry.
2. Super Tax: This Tax was imposed in the Federal Budget of 2015-2016 and assurance was given that Super Tax levied is for one year, but in the new budget 2016-2017 it is once again levied which needs to revisit as these things challenging credibility of the government.
3. Anomalies in the recent Budget: Technology up-graduation fund (TUF) scheme for the Non Textile Sector has been formulated which will be implemented from 1st July 2016. But the fact is that TUF Scheme, which was already taken in to consideration from 1st September 2009 to 30th June 2014.
It means complete 02 years ie 1st July 2014 to 30th July 2016 missing which needs to revisit and correct as keeping in view Textile Policy + STPF new machine already arrived and become part of production. Those investors will deprived their due share as per main policy TUF Scheme is valid for 1st July 2014 to 30th June 2019.-PR
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