Textile sector comes out swinging against FBR’s new taxes

Says SRO 154 will discourage formal and registered textile units.

KARACHI: The value-added textiles sector launched an all-out offensive against the Federal Board of Revenue (FBR) on Wednesday, saying that the tax collection body should stop its anti-taxpayer policy.

Representatives of the sector targeted the FBR here at a press conference against the issuance of SRO 154, and say they have planned to stage a protest outside the Karachi Press Club on Thursday.

“We want the FBR to withdraw SRO 154, because this will not only tie up huge refunds with the FBR, but also discourage the formal and registered value-added textile sector,” Pakistan Central Hosiery Manufacturers Central Chairman Jawed Bilwani told The Express Tribune.

While directly targeting the FBR, Bilwani said the tax authority is supporting corruption in the textile sector. He said that he and his colleagues went to Islamabad to resolve the issues, but soon realised that the FBR was not serious in helping the value-added textile sector.

Representatives asked the FBR why it was reverting to the system of charging sales taxes and then refunding them.

On the other hand, the FBR aggressively brushed aside the reservations of the textile manufacturers.

“The FBR has lodged FIRs against various textile companies that were not paying the right amount of taxes,” FBR spokesperson Asrar Raouf said. “If the value-added textile sector wants to ease these problems, it will have to pay all taxes.”

The government has to collect taxes, which is what the FBR is doing, said Raouf.

Published in The Express Tribune, March 14^th, 2013.

Like Business on Facebook to stay informed and join in the conversation.