Textile exporters feel deprived of relief
The textile industry wanted a reduction in the turnover tax to 1.5% so it could compete with regional competitors
Representational image. PHOTO: REUTERS
LAHORE/KARACHI:
In his comments on the budget, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani regretted that the government had shunned textile export sector in the budget.
The government failed to end the 17% sales tax imposed on domestic sales of textile sector, which has triggered a liquidity crunch in the shape of stuck refunds worth billions of rupees, he said. Bilwani held the view that budget 2020-21 would only benefit the construction sector of the country while textile sector will remain deprived of relief for another year.
“Textile industry is the backbone of the economy and exports and it provides employment to a considerable amount of female workers particularly those belonging to the lower class,” he said.
“Furthermore, the expected global recession will pose new challenges for the textile exporters and spark a price war among brands.”
“We were expecting a reduction in sales tax to 5% in case the government decided against restoration of zero-rated status,” said All Pakistan Textile Mills Association (Aptma) Punjab Chairman Adil Bashir.
Furthermore, the textile industry wanted a reduction in the turnover tax to 1.5% so it could compete with regional competitors.
Published in The Express Tribune, June 14th, 2020.
In his comments on the budget, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani regretted that the government had shunned textile export sector in the budget.
The government failed to end the 17% sales tax imposed on domestic sales of textile sector, which has triggered a liquidity crunch in the shape of stuck refunds worth billions of rupees, he said. Bilwani held the view that budget 2020-21 would only benefit the construction sector of the country while textile sector will remain deprived of relief for another year.
“Textile industry is the backbone of the economy and exports and it provides employment to a considerable amount of female workers particularly those belonging to the lower class,” he said.
“Furthermore, the expected global recession will pose new challenges for the textile exporters and spark a price war among brands.”
“We were expecting a reduction in sales tax to 5% in case the government decided against restoration of zero-rated status,” said All Pakistan Textile Mills Association (Aptma) Punjab Chairman Adil Bashir.
Furthermore, the textile industry wanted a reduction in the turnover tax to 1.5% so it could compete with regional competitors.
Published in The Express Tribune, June 14th, 2020.