AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.04 Decreased By ▼ -0.95 (-0.74%)
BOP 6.67 Increased By ▲ 0.07 (1.06%)
CNERGY 4.51 Decreased By ▼ -0.09 (-1.96%)
DCL 8.55 Increased By ▲ 0.07 (0.83%)
DFML 41.44 Decreased By ▼ -0.04 (-0.1%)
DGKC 86.85 Increased By ▲ 0.27 (0.31%)
FCCL 32.28 Increased By ▲ 0.14 (0.44%)
FFBL 64.80 Decreased By ▼ -0.62 (-0.95%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 Decreased By ▼ -0.92 (-0.83%)
HUMNL 14.68 Decreased By ▼ -0.07 (-0.47%)
KEL 5.05 Decreased By ▼ -0.08 (-1.56%)
KOSM 7.46 Increased By ▲ 0.34 (4.78%)
MLCF 41.38 Decreased By ▼ -0.27 (-0.65%)
NBP 60.41 Increased By ▲ 0.32 (0.53%)
OGDC 190.10 Decreased By ▼ -4.59 (-2.36%)
PAEL 27.83 Decreased By ▼ -0.12 (-0.43%)
PIBTL 7.83 Decreased By ▼ -0.17 (-2.13%)
PPL 150.06 Decreased By ▼ -1.11 (-0.73%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 Increased By ▲ 0.07 (0.44%)
SEARL 86.00 Increased By ▲ 7.80 (9.97%)
TELE 7.71 Increased By ▲ 0.32 (4.33%)
TOMCL 35.41 Decreased By ▼ -0.26 (-0.73%)
TPLP 8.12 Increased By ▲ 0.21 (2.65%)
TREET 16.41 Increased By ▲ 0.52 (3.27%)
TRG 53.29 Increased By ▲ 0.53 (1%)
UNITY 26.16 Decreased By ▼ -0.39 (-1.47%)
WTL 1.26 Decreased By ▼ -0.01 (-0.79%)
BR100 9,884 Decreased By -36.4 (-0.37%)
BR30 30,600 Decreased By -151.5 (-0.49%)
KSE100 93,355 Increased By 130.9 (0.14%)
KSE30 28,931 Increased By 46 (0.16%)

Five Export Sectors' Associations in Multan have demanded of the Government to issue a notification regarding zero-rated regime for export-oriented textile industry.
This demand came from Syed Muhammad Aasim Shah Chairman APBUMA, Khawaja Muhammad Ilyas (APTMA) Nawab Shehzad Ali Khan Chairman of PCGA, Ex-Presidents of MCCI Shahid Nasim Khokhar, Khawaja Muhammad Yousaf, Atta Shafi Tanvir Senior Vice President of MCCI, Khaliq Qandeel Ansari of All Pakistan Power Looms Association, Zulfikar Nasuha President DGCCI, Muhammad Iftikhar, Chaudhry Abdul Jabbar and Zulfikar Ali.
Talking to media persons, they have asked the Federal Minister for Finance and the FBR chairman to immediately issue the notification for zero-rating of five export sectors so that exporters could make shipments as per announcements in the federal budget. They said that value-added export sectors were waiting for the issuance of the SRO or notification of the decision, as they had to prepare export shipments as per the rule "no-payment, no-refund".
They told media men that the government had accepted the demands of the textile sector regarding SRO.1125. They said that the government would abolish 3% to 5% sales tax on different stages which would be replaced with zero-percent sales tax in the budget. They said firstly, the government agreed to zero-rate five major export sectors including textile, leather, carpets, surgical and sports goods in the budget (2016-17). Secondly, zero-rating regime would be applicable on all stages of imports/supplies except retail stage. The entire supply chain would be subjected to zero-rating regime prevalent prior to March 2013. They said that thirdly, sales tax would be applicable at the retail stage but input could not be claimed at this stage. Fourthly, it had also been decided that the zero-rated sectors would not be entitled to claim sales tax refunds on packing material. Fifthly, it was agreed to restore the SRO.1125 to its original status as zero-rating regime applicable in the past. Sixthly, it was expected that the sales tax would be applicable on supplies or sales made to unregistered persons. They said that it was a big achievement of the textile sector and the government had accepted their proposals in order to enhance exports.
They said that the government had decided to reinstate the zero-rated regime to value-added textile, carpet, surgical, sports goods and leather trade. They particularly appreciated the role of Finance Minister Muhammad Ishaq Dar for resolving the issue of zero-rated sectors. Following the decision, the FBR took the budget proposal to enhance sales tax on zero-rated sectors. They further said, this decision would boost Pakistani export, in order to get maximum results (ie 20 to 25% increase), government should immediately release refund payments against Sales Tax, duty drawback and drawback on local taxes and levies (DLTL) as well as bring down tariff of electricity, gas and water to boost exports and give incentives to export as per other competitor countries. They advised the government to continue with the economic-oriented policies so that Pakistan would become self-sufficient instead of seeking loans from the IMF all the time.

Copyright Business Recorder, 2016

Comments

Comments are closed.