Business

Garment exporters: Zero-rated facility to put economy back on rails

It will help promote exports, create job opportunities

Our Correspondent July 04, 2016

The Prgmea chief coordinator said the reintroduction of zero-rated or no-tax and no-refund regime for the apparel sector, which contributed more than 50% to foreign exchange earnings, was a positive step for restoring viability of the ailing garment industry. PHOTO: ONLINE

LAHORE: After the Federal Board of Revenue (FBR) formally notified the grant of zero-rated facility to the export sectors, the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) hailed the restoration of this sales tax regime for five major export sectors, including the value-added textile industry.

“We welcome the prime minister’s initiative of zero-rated sales tax regime to facilitate the export-oriented industry, which has been its long-standing demand,” said Prgmea Chief Coordinator Ijaz Khokhar in a statement.

He said the step would help promote the country’s exports, which had been stagnant since long. “It will put the economy back on rails, boost the trust of not only local businessmen but will also give a very good message to foreign investors,” he said.

Khokhar said the zero-rated sales tax regime would bring down the cost of doing business and Pakistani products would be able to win their due share in the international market.

He hoped that the incentive would jumpstart national exports, expand the industrial base and generate employment opportunities.

The Prgmea chief coordinator said the reintroduction of zero-rated or no-tax and no-refund regime for the apparel sector, which contributed more than 50% to foreign exchange earnings, was a positive step for restoring viability of the ailing garment industry.

He also appreciated the reduction in export refinance rate by 0.5%, saying the government should also announce a comprehensive package for the industry.

Published in The Express Tribune, July 5^th, 2016.

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COMMENTS (1)

Amna Khan | 8 years ago | Reply That is a positive step. Plus look at Bangladesh and how they have left Pakistan and many other countries behind in Textile exports. In Bangladesh, women make up a majority of the textile workers, and women usually demand much less pay, almost 1/2 as much as men, and they also work better, as many women already know how to use sewing machines. So, Pakistan has a lot of people in poverty, now almost 1/2 the population, and many of those poor women would not mind working in the factories, instead of staying home and just watching TV or real life dramas.

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