Chairman, Pakistan Yarn Merchant Association (PVMA), Mohammad Iqbal Mandavia and members of the association have urged chairman Federal Board of Revenue (FBR) and Federal Finance Minister to withdraw SRO 140(1) 2013 and SRO 154(1) 2013. They said the implementation of these SROs is going to crunch the business activates of zero rated textile sector.
They also expressed concerned that the abolition of zero rated regime for textile industry will slow down the efforts to increase the country's exports at a time when our country's economy is suffering from so many crises such as energy, law and order, etc. PYMA appreciated level playing field given in SRO 140(1)2013 by keeping the withholding tax at uniform rate for both industries and commercial imports.
However, it strongly opposed the increase in withholding rate from 1 percent to 5 percent on import of raw material of five zero rated sectors. This shall cripple the exports and hence further deteriorate the country trade balance. PYMA also expressed concern over the levy of 2 percent value addition tax in addition to 2 percent sales tax on commercial imports in SRO 154(1)2013. It is basically 100 percent value addition which shall lead to further increase in cost of doing business. PYMA demanded equal level playing field to all stakeholders, commercial imports as well as industrial and requested withdrawal of additional 2 percent sale tax at import stage.-PR