Summary Exporters have named additional taxes reason for Pakistan's slow progress in textile sector
LAHORE (Dunya News) – Exporters involved in textile goods said that they have not been returned 30 percent investment under export refund, Dunya News reported Wednesday.
Pakistan Textile Exporter Association stated that facilities granted in the policy have not been implemented upon. The association stated that electricity cost in Pakistan is the highest in the region.
Exporters have named additional taxes reason for Pakistan’s slow progress in textile sector compared to other countries. They said that textile imports have fallen by 20 percent in September while at least 11 percent in October.
The exporters have put forth three demands. The association wants the government to announce a textile package, cut tax in value added department completely and ensure uninterrupted supply of gas to industries.
It should be mentioned here that exports are likely to fall by 20 percent in near future if taxes are not withdrawn. In the first quarter of the Fiscal Year (FY) 2015-16, textile exports have already decreased by 13.42 percent.
The government has increased sales tax by at least 50 percent in the 2015-16 budget. Earlier, the sales tax on textile exports was two percent.
Pakistan Apparel Forum Chairman Jawed Bilwani has said that lessening cost of business upto neighbouring countries’ parallel is imperative to maintain a steady growth in textile sector.
