President of Multan Chamber of Commerce and Industry (MCCI) Shahid Naseem Khokhar has appreciated the Chairman Federal Board of Revenue (FBR) and the Ministry of Finance for restoration of zero rating import of machinery and expressed hope that it would attract fresh investment in the textile industry. The ministry made this announcement through SRO 727 dated 1st August 2011.
The MCCI President said the positive attitude of the government in understanding the industry contentions on zero rating import of textile machinery is highly appreciable. "It would be a win-win situation for both the government and the industry," he added. It may be noted that the government had withdrawn sales tax exemption on imported machinery through SRO 230 dated 15 March 2011 on the pretext that the commercial importers were misusing the facility.
However, the MCCI took up the issue with relevant authority and argued that the withdrawal of sales tax exemption would merely be an exercise affecting liquidity of the investors with no revenue benefit to the exchequer. The Chairman FBR, in agreement with the APTMA, directed the concerned authority to restore the zero rating import regime for textile machinery. MCCI President expressed hope that restoration of zero rating import of textile machinery would help industry in taking decisions of further investments.