Garment exporters: Zero-rated facility to put economy back on rails
It will help promote exports, create job 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. 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 5th, 2016.
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 5th, 2016.