All Pakistan Textile Processing Mills Association (APTPMA) has urged the federal government for continuation of zero-rated regime for one month to devise a mechanism for payment of sales tax. Operations of textile processing mills remained suspended on third consecutive day as mills are not getting new order due to imposition of 17 percent sales tax in the federal budget as facility of zero rating has been revoked effective July 01, 2019.
All stakeholders of textile sector were gathered at office of SITE Association on Wednesday and unanimously passed resolution that federal government should revive SRO1125 and stop implementation on payment of 17 percent sales tax for one month (upto July 31, 2019) and immediately start dialogs with stakeholders to resolve the issues.
The joint meeting of all stakeholders was chaired by Arif Lakhani Regional Chairman All Pakistan Textile Processing Mills Association and attended by wholesalers and retailers of textile sector, dying industries, processing industry and weaving industry.
Zubair Motiwala former president Karachi Chamber of Commerce and Industry, Younus Bashir, Javed Bilwani Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMEA), Iqbal Lakhani, Chaudary Zulfiqar, Muhammad Ashraf, Iqbal Arbi, Amjad Jalil, Naveed Wahid Acting Chairman SITE Association of Trade and Industry, S M Aalam of Old City Traders Alliance, Rizwan Amin and Shahid Wadood of Latif Cloth Market, Jamil Shamsi of Weaving industry, Anwar Aziz Balagamwala and hundreds of other were also present in the meeting.
Arif Lakhani said that processing mills across the country are closed for the last three days as government's decision has created panic among the textile sector and clients are not placing new orders.
He said that government should realise the industry situation and immediately suspend the sales tax implementation for one month so industry can devise a mechanism for payment.
Zubair Motiwala said that measures taken in the budget have directly hit the industrial productivity and presently most of textile activities have come to standstill.
Textile sector is facing multiple challenges including 17-20 percent sales tax, 31 percent rise in gas tariff, increase in power tariff and Pak Rupee depreciation, he said and added that industry is unable to work in this condition.
He urged the government for negotiation with stakeholders of textile to resolve the issues. The country's textile exports may face a straight decline of 30 percent in this fiscal year, if government does not address the issues, he warned.
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