Taxing business: Knitwear, garment exporters make appeal
Under the pressure of influential millers, the sales tax was reduced from 15-17% to 2 %, said Shahzad Azam Khan.
Pakistan Apparel Forum has appealed to the FBR to treat knitwear and garment exporters separately from local suppliers of textile products in the sales tax regime. DESIGN: ESSA MALIK
LAHORE:
The Pakistan Apparel Forum has appealed to the Federal Board of Revenue to treat knitwear and garment exporters separately from local suppliers of textile products in the sales tax regime.
The sales tax defaulters detected through FBR CREST technology influenced the revenue collector to recover the detected dues also at the rate of 2 % instead of 15 % sales tax rate.
Published in The Express Tribune, February 13th, 2014.
The Pakistan Apparel Forum has appealed to the Federal Board of Revenue to treat knitwear and garment exporters separately from local suppliers of textile products in the sales tax regime.
Addressing a press conference, chairman Shahzad Azam Khan said the export sector is exempted from all taxes as exports are zero-rated.
He said the exporting sectors were exempted from sales tax but after the FBR detected a huge tax evasion of over Rs25 billion by the producers of ladies fabric supplied in the local market, it imposed sales tax.
He said that, under the pressure of influential millers, the sales tax was reduced from 15-17% to 2 %.
The sales tax defaulters detected through FBR CREST technology influenced the revenue collector to recover the detected dues also at the rate of 2 % instead of 15 % sales tax rate.
Published in The Express Tribune, February 13th, 2014.