Textile: Industry opposes increase in sales tax

PTEA office bearers urged the government to drop the proposal for increase in sales tax. PHOTO:FILE

FAISALABAD: 

The Pakistan Textile Exporters Association (PTEA) has strongly opposed the proposed increase in sales tax and changes in tax regime, saying that this will create a negative impact on textile exports.

PTEA Chairman Sheikh Ilyas Mahmood said that this move would adversely affect exports at a time when huge amount of sales tax refunds are already stuck up with the Federal Board of Revenue (FBR).

“The textile export sector has already been reeling under severe energy shortage, hike in tariffs, and high cost of production,” he said, adding that in the prevailing economic conditions, a rising cost of production is the core issue for textile exporters.

PTEA office bearers urged the government to drop the proposal for increase in sales tax and demanded the resumption of the zero rating schemes in the better interest of the textile industry to increase country’s exports along with attracting investment.