Sialkot is the hub of the small and medium enterprise (SME) sector and businesses belonging to the segment need swift flow of working capital for smooth operations, said Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Regional Chairman Sheikh Luqman Amin.
In a statement on Friday, he appreciated the Federal Board of Revenue (FBR) for resolving the longstanding issue of 5% withholding tax for the SME sector. He stressed that due to FBR’s efforts, the levy will now be applicable on a certain percentage of exporters’ purchases from unregistered persons.
He pointed out that the issue of 5% withholding tax on companies emerged as a result of amendment in the 11th Schedule of the Sales Tax Act through the Finance Act 2019.
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He further thanked the government for offering incentives and support to the apparel exporters which helped them in enhancing textile exports by over 28% during the first five months (July-November) of the current fiscal year to $7.76 billion.
He maintained that positive decisions of the government to facilitate the industrial sector played a vital role in stabilising the economy in addition to keeping jobs of the millions of workers intact.
Published in The Express Tribune, December 25th, 2021.
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