The textile industry is worried over the hostile attitude of the regional offices of Federal Board of Revenue (FBR) operating in isolation to negate the policies and vision of the high command of FBR. The Income Tax Department has started issuing notices to garment manufacturers against the research and development (R&D) fund, a subsidy offered by the government, which has irked the exporters in general.
A number of complaints have been received by the office of the Federal Advisor on Textile Mirza Ikhtiar Baig on this count where the exporters, particularly those from the Pakistan Bedwear Association and Pakistan Knitwear Association, complained about the letters received from the Income Tax Department in this regard. Dr Baig said in a statement that the issue would be taken up at appropriate level to avoid any untoward situation for the value-added sector, already under heavy burden due to adverse business circumstances.
Earlier, Customs Department had issued notices to the spinning sector for payment of 0.5 percent withholding tax, which was exempted through SRO 576. This attitude on the part of regional offices of FBR is quite worrisome and they are of the view that it is a new round of rebellion against the FBR Chairman. According to industry sources, the tax mafia is active against the FBR Chairman and is trying to let him down by all possible means.
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