APTMA welcomes reintroduction of zero-rated regime

31 May, 2016

All Pakistan Textile Association (APTMA) Chairman Tariq Saud Monday appreciated timely decision of the federal government to reintroduce 'Zero Rating or No-Tax and No-Refund Regime' for the textile sector - the largest export oriented sector and contributes more than 55 percent of foreign exchange earnings through exports.
On behalf of textile sector, he thanked Prime Minister Nawaz Sharif, Finance Minister & Economic Affairs, Haroon Akhtar Khan Special Assistant to the Prime Minister Ishaq Dar and FBR Chairman Nisar Muhammad Khan for acceptance the longstanding demand of APTMA to restore zero rating of raw materials exclusively used by the industry for the manufacturing of products which will be a step forward for the development and growth of export-oriented textile industry.
He also especially appreciated the role of Ishaq Dar for realising the issue and taking a concrete step for the revival of the textile industry which will work well and boost exports. He further said that the application of sales tax regime at the rate of zero-percent on export-oriented sectors, including textiles from 2016-17 wherein the entire supply chain would be subjected to zero-rating regime would take away the issue of refunds and resolve liquidity problems both for the industry and its buyers.
A delegation led by Chairman APTMA Tariq Saud also participated in a meeting of the textile value chain held with Finance Minister on Sunday in Islamabad to present the case. Haroon Akhtar Khan Special Assistant to the Prime Minister on Revenue and Chairman FBR were also present in the meeting. The Finance Minister also assured the team of considering other recommendations of APTMA for the restoration of viability of the industry for export boost.

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