Chairman of the Value-Added Apparel Forum Javed Bilwani has requested the Federal Board of Revenue (FBR) to include the knitting sector in the proposed sales tax regime for zero rating in budget (2012-2013). Javed Bilwani contended that knitting sector has the same rationale for zero rating as weaving, sizing and warping sectors.
If the FBR's intends to provide sales tax zero-rating to weaving, sizing and warping sector, the same facility should be granted to the knitting sector. Over 25 percent of the textile sector covers knitting units, having major chunk of the textile supply chain.
Like weaving, knitting also consists of small-scale manufacturing, which provides job opportunities to the underprivileged class, he contended. The knitting sector was an important part of the value-added hosiery exports, which contributed exports valued at more than $2 billion, he said. The extension of zero rating facility to this segment will not only address general economic concerns, but may also help boost the quantum of exports, the leading Karachi-based textile exporter added.
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