Chairmen of five Textile Sectors' Associations have expressed grave concern and apprehensions on the FBR proposal of hefty increase in Sales Tax and strongly demanded for "Zero-rated tax regime at 0% No payment No Refund System for the export-oriented Textile Industry. They have also threatened to begin protest campaign in all over the country if the payments of pending Sales Tax Refund Claims, Customs Rebate Claims and the DLTL Claims were not paid by the government.
Dr Khurram Tariq, Central Chairman Pakistan Hosiery Manufacturers & Exporters Association (PHMA) said this while speaking at a joint media conference at Dynasty Faisalabad on Tuesday. He said that recently Press reported that the FBR proposed hefty increase in sales tax for by 3% to 5% and wanted to withdraw exemption from 5% withholding tax on power bills that was indeed most alarming news for the 5 zero-rated export sectors.
"It sounds death knell for our exports because Prime Minister announced on February 13 of grant of zero-rating to the export sectors in the new Budget 2016-17 and now this news that FBR is proposing this draconian move which will surely aim to destroy exports of our value-added zero-rated sector, he said.
Zonal Chairman PHMA (North Zone) Qamar Aftab said that Prime Minister Nawaz Sharif committed to announce an incentive package for exporters as well as 0% sales tax "no payment no refund" for five major exports sectors but so far the steps were not taken. He said that due to delay in payments of refund exporters were facing shortage of working capital. Syed Zia Alamdar Hussain Senior Vice President of Faisalabad Chamber of Commerce & Industry (FCCI) said that all stuck-up claims pertaining to custom rebate, sales tax and DLTL should be released without any further delay. He also demanded to withdraw the revision in the method of calculation of DLTL claims. It will not only require additional paper work and fresh certificates but also require re-verification of the Ministry of Textile. This step was un-warranted and unnecessary due to its retrospective effects, he added.
Answering a question, Dr Khurram said that it was most unfortunate and indeed regrettable that the incumbent Government had totally failed in increasing exports and it is evidently a matter of real concern that just because of the wrong policies and the Government's complete lack of concern that the exports of the nation had declined by 12.99% while the exports of our regional competing countries had increased with Bangladesh export by 9.22% and Vietnam by 9.10%) from which it clearly proved that all the ministries and departments concerned with exports of our country had miserably failed. He urged upon the government to implement "No payment No refund" system with immediate effect and also announce the most awaited incentive package for the export sectors.
Mohammad Ajmal Qasuri Vice Chairman, All Pakistan Cotton Powerlooms Association (APCPA), Rana Talib Hussain, Vice Chairman, All Pakistan Sizing Industries Association, Naveed Gulzar, APTPMA and others leaders demanded of the Federal Government that speedy disbursement of all held up payments of exporters; Revival of "No Payment No Refund" System; tariff of electricity, gas and water for export sectors should be brought down at par with regional competitors and announcement of the promised incentive package for the export sectors.