Pakistan Textile Exporters Association (PTEA) has rejected the withdrawal of zero-rating of exports and termed imposition of 2 percent sales tax on textile and increase in withholding tax a detrimental to the overall business activities in the country and demanded immediate withdrawal of the notifications. This was unanimously resolved in an emergent meeting of textile exporters here on Sunday.
Briefing the media, after the meeting, acting chairman PTEA Muhammad Asif said that sales tax notification SRO 154(I)/2013 and SRO 98(I)/2013 were detrimental to the overall business activities in the country. The changes in sales tax regime were totally against the exports and would cause damages to whole textile export chain. Implementation of these SROs will increase the cost of doing business of the export sector manifold and will adversely affect the country's exports targets. He said that these SROs were issued and enforced without consultations with all the stakeholders.
Muhammad Asif was of the view that with imposition of 2 percent sale tax and increase in WHT rate, textile sector would face immense financial burden besides become uncompetitive in the international market. Rejecting the SROs, he said that hundreds of manufacturing units would be closed down and as a result thousands of workers would be rendered jobless.