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Summary NA Standing Committee on Textile Industry has directed tax authority to exempt power looms.
The National Assembly Standing Committee on Textile Industry has directed tax authority to exempt sizing, power looms and hosiery sectors which were earning less than 5 million annually from General Sales Tax (GST).Meeting of National Assembly standing committee on Textile Industry held under the chair of Hajji Muhammad Akram to discuss the matter relating to imposition of GST on power looms sizing, hosiery and towel sector vide SRO 1125.Standing committee said that threshold should be removed to facilitate small businessmen and federal Board of Revenue should bring a long term solution for small businessmen in textile sector.Standing committee directed FBR to collect tax from small businessmen in the textile sector for a single time as it was observed that board collects tax from these sectors thrice through different façade.Committee said that these small businessmen are already paying million of rupees to develop their infrastructure while their earnings are low therefore board should not put extra burden on these small businessmen.Chairman of the committee Haji Akram said that due to strict policies of FBR small businessmen escapes and does not pay tax.Officials of FBR told the committee that it is not possible for FBR to exempt small power looms owners from GST as if anyone would be exempted from the tax net then it would create problems for the board in future.Official further told the committee that SRO 1125 issued after consultation with all stakeholders and has been implemented.Standing committee also constituted a sub-committee to solve the issues of Karachi textile city in the economic hub of the country.Earlier, General Manager SNGPL Masood anjum informed the committee that currently 8065 mmcfd gas is available in the system while its demand is 2489 mmcfd so company is facing shortfall of 6024. He said during the iftar and sehri timings gas demand in domestic sector increased therefore gas pressure to the industry reduces.DG petroleum Dr Shahab Alam informed the committee that government is well aware about the issues of industry therefore priority list of gas supply has been changed and industry has been placed at two. He said that KPK has surplus gas reserves therefore province is exempted from load shedding.Abdul Rasheed Godail said that surplus gas is also available in Sindh but load shedding is observed there.DG petroleum failed to satisfy and respond the queries of members of standing committee.Standing committee directed Secretary Petroleum Dr Waqar Masood to ensure his presence during the next meeting of the standing committee and respond the queries of the members.
