Representatives of five zero rated sectors (value added textile, carpet, leather, sports goods and surgical goods) have distanced themselves from All Pakistan Textile Mills Association (APTMA) after a news circulated by APTMA leadership regarding negotiation between industry circles and the Federal government on imposition of sales tax on the said sectors.
While talking to Business Recorder here on Friday, Ijaz A Khokhar, Chief coordinator of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), said that associations of the five zero rated export sectors did not give mandate to anybody to negotiate on their behalf.
Hence, he appealed to the Federal government to hold talk only with those people who truly represent these sectors. He also said that during a recent meeting with Prime Minister Imran Khan, the representatives warned that imposition of sales tax on zero rated sectors will have devastating impact on small and medium exporters. "In the past twice these sectors had to bear similar actions and if it again imposed for the third time the result will be a complete disaster," he added. Khokar warned that if the government withdrew the status of zero-rate on value added textile, carpet, leather, sports goods and surgical goods sectors then they will stage street agitation against this decision.