Five export associations in Multan have demanded the Pakistan government to issue a notification regarding zero-rated regime for export-oriented textile industry. The demand came from Syed Muhammad Aasim Shah Chairman APBUMA, Khawaja Muhammad Ilyas (APTMA) Nawab Shehzad Ali Khan Chairman of PCGA, Ex-Presidents of MCCI Shahid Nasim Khokhar, Khawaja Muhammad Yousaf, Atta Shafi Tanvir Senior Vice President of MCCI, Khaliq Qandeel Ansari of All Pakistan Power Looms Association, Zulfikar Nasuha President DGCCI, Muhammad Iftikhar, Chaudhry Abdul Jabbar and Zulfikar Ali.
They have asked the FM and the FBR chairman to immediately issue the notification for zero-rating of five export sectors so that exporters could make shipments as per announcements in the federal budget. They said that value-added export sectors were waiting for the issuance of the SRO or notification of the decision, as they had to prepare export shipments as per the rule ‘no-payment, no-refund.’
They said that the government had accepted the demands of the textile sector regarding SRO.1125. They demanded that the government would abolish 3 per cent to 5 per cent sales tax on different stages which would be replaced with zero-per cent sales tax in the budget.
The associations further said, this decision would boost Pakistani export, in order to get maximum results (i.e.; 20 to 25 per cent increase), government should immediately release refund payments against Sales Tax, duty drawback and drawback on local taxes and levies (DLTL) as well as bring down tariff of electricity, gas and water to boost exports and give incentives to export as per other competitor countries.