The value-added textile industry has criticised the Punjab Revenue Authority (PRA) for imposing 0.9 percent tax on imports in the province for exporting purposes. "The Punjab government is actually taxing the exports by imposing this tax on imports in Punjab, which is a rare move," said Shahzad Azam Khan, Chairman Pakistan Knitwear and Sweaters Exporters Association.
It may be noted that the value-added textile industry was already fighting for a zero-rating regime with the federal government. "We are asking for a No Tax No Refund regime from the federal government and the Punjab government has put a dagger in our back by imposing tax on imports," he said.
This new situation has put the value-added textile industry into a troublesome situation, as imposition of any such tax is quite irrational because the export-oriented textile industry cannot seek adjustment like the federal taxes. When asked whether the Punjab government had consulted the value added textile industry before imposing this tax, he said it had never happened and the Punjab Revenue Authority signed an agreement with the Customs authorities and started collecting this tax.
He has also wondered the silence of the federal government, particularly the Advisor to Prime Minister on Revenue Haroon Akhtar. "The federal government should take notice of the fact that the Punjab government was taxing exports to show revenue, which is a negation of the zero rating regime," he concluded.