Adil Bashir, All Pakistan Textile Mills Association Punjab Chairman has urged the federal government to restore the zero-rated regime and restore SRO 1112 so that the industrial sector can deal with the liquidity crisis in the current situation.
Aptma Punjab Chairman Adil Bashir said that the textile industry is the backbone of the country’s economy and accounts for more than 60% of the country’s exports and is the largest employer of skilled and unskilled manpower. The country’s textile sector should be able to compete with other regional competitors. Exports of textile products fell by 64% in April 2020 and this trend is likely to continue in the coming months.
He said that in order to satisfy the FBR about the actual consumption of inputs in the exported goods, tax-free procurement and movement of raw materials. And intermediates from one registered person to another throughout the value-added chain across the country must be allowed.
He said the post-COVID-19 business outlook is bleak and the current fast sales tax system is no longer viable. Under these circumstances, it is not possible for the entire value chain of the textile industry to continue paying sales tax in the absence of cash flow.
He, therefore, appealed to the Prime Minister to personally intervene in the matter and direct the Ministry of Finance to restore the zero-rating system for the textile sector in the federal budget 2020-21.
Extracted from City42 News