Textile industry: 'FBR to restore zero-rated status'

Finance minister likely to finalise amendments on March 26.

LAHORE: Relenting to pressure from the textile industry, the Federal Board of Revenue (FBR) is removing ambiguities in a recently issued notification which will restore duty exemption for registered manufacturers and exporters, a textile industry official says.

FBR is amending the controversial SRO 231, following strong protests by the textile industry, to ensure a zero-rating regime across the board for procuring input and selling output by manufacturers and exporters, provided the supply of products is made to registered manufacturers and exporters.

Representatives of seven subsectors of the textile industry, including sizing industry, cotton merchants, yarn mer chants, grey cloth makers and power loom owners met with the All Pakistan Textile Mills Association (APTMA) chairman.

Talking to the media, an APTMA official said that FBR has understood the industry's viewpoint on SRO 231 and is in the process of amending it in line with the desire of the industry. According to him, the federal finance minister is likely to finalise the amendments on March 26, in the larger interest of the textile industry and value chain.

On Monday, FBR Chairman Salman Siddique visited APTMA and asked Customs officials to clear imported raw material for man-made fibre manufacturers and assured revision of the SRO.

Published in The Express Tribune, March 24^th, 2011.