A delegation of textile millers will meet President Asif Ali Zardari next week and apprise him of reservations of the business community regarding Reformed General Sales Tax (RGST) and the impact of putting an end to zero rating.
Vice President Karachi Chamber of Commerce and Industry (KCCI), Junaid Ismail Makda said that value-added textile industry is going through a difficult time due to ever increasing manufacturing cost, high cost of raw material, power shortage and bad law and order situation.
He said around Rs 42 billion has been stuck with Federal Board of Revenue (FBR) in sales tax refunds claim, which are pending for clearance for a long time. The vice president expressed concern that the federal finance minister and chairman FBR have no time to meet representatives of the business community and discuss the issue.
Makda further said that the business community intended to lodge protest against RGST but they would wait until they have meeting with President Zardari. They hoped that the president would take appropriate measures to resolve their issues. He further said that small and medium sectors associated with exports facing serious financial constraints due to non-release of refund claims by FBR.