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Related Keywords: customs duty, Federal Board of Revenue, immediate relief as huge quantity of cotton, imports of raw and ginned cotton, notification states, stuck at ports for clearance, textile millers, textile sector will avail benefits, withdrawn sales tax

The Federal Board of Revenue (FBR’s) notification states that textile sector will avail the benefits on imports of raw and ginned cotton having withdrawn sales tax and customs duty on cotton imports on Tuesday in line with the government’s order, a move that was resented by the growers.

The tax concession would provide immediate relief as huge quantity of cotton is stuck at ports for clearance since the ECC’s decision, said Asif Inaam, zonal chairman of All Pakistan Textile Mills Association.

Related Keywords: collect reduced levy on textile product, Federal Board of Revenue, five export-oriented sectors includes textile, government may double sales tax, keep the tax rate at zero, on domestic sale of textile, proposal for approval to increase sales tax, textile lobby seeking complete exemption from taxes, textile ministry fiercely opposes FBRs move

The proposal to be presented to Prime Minister Nawaz Sharif for approval to increase the sales tax on textile, leather, carpets, sports goods and surgical goods was part of the tax measures for new financial year 2016-17. Currently, domestic sales of these five export-oriented sectors are taxed at reduced rates, but the textile lobby is seeking complete exemption from taxes on the grounds that the Federal Board of Revenue (FBR) is not timely paying their tax refunds.

Related Keywords: are chargeable to Sales Tax, Federal Board of Revenue, five major export oriented sector, Imported finished textile articles, includes Textile, locally made finished textile articles, ongoing budget exercise, Retailers of textile sectors, reworking sales tax structure, value addition, zero rated from sales tax to boost up exports

The Federal Board of Revenue (FBR) during the ongoing budget exercise for 2016-17 is reworking sales tax structure on the five major export oriented sector which includes textile, carpets, leather, surgical and sports goods under SRO.1125. According to Tax experts, sales tax on five export-oriented sectors was declared zero-rated first time through Finance Bill 2005.

Related Keywords: beneficiary business closed down, certain textile sector units, expired or leased or shifted, failure in paying outstanding recoverable demand, Federal Board of Revenue, lease of the premises, not meeting criteria, sold out, supply of electricity and gas, withdrans sales tax zero-rating facility, zero-rated energy meters are installed

The sales tax zero-rating facility that was allowed to the registered manufacturers and exporters of five leading sectors including textile, leather, carpets, surgical and sports goods with a view to facilitate exports. The Federal Board of Revenue (FBR) has withdrawn it which was available to certain textile sector units on the supply of electricity and gas for not meeting the criteria.

Related Keywords: dyed blended polyester cotton garments, export of hosiery and woven garment, Federal Board of Revenue, Pakistan Hosiery Manufacturers and Exporters Association, PHMA, raised DBK rates, rates are worked out by the Input-Output Co-efficient Organisation of Customs. white blended polyester cotton garment, revised proposal on DBK

Pakistan Hosiery Manufacturers and Exporters Association (PHMA) had submitted revised proposals on duty drawback rates on export of hosiery garments and woven garment to the Federal Board of Revenue (FBR) which has been finally accepted.

The Federal Board of Revenue (FBR) has raised duty drawback rates on export of hosiery garments and woven garments. The rates are worked out by the Input-Output Co-efficient Organisation (IOCO) of the Customs.

Related Keywords: apparel export sector, considering to regulate duty on import of cotton yarn, Federal Board of Revenue, international market, negative impact on value added textile sector, PHMA, protect spinning sector, rejects idea of imposing import duty

The Federal Board of Revenue (FBR) is considering to regulatory duty on import of cotton yarn as a move to protect spinning sector against this Pakistan Hosiery Manufacturers and Exporters Association (PHMA) have rejected the idea of imposing import duty on yarn as it would pose negative impact on the value-added textile sector.

Related Keywords: across value chain, APTMA, closure of textile industry, energy constraint, fails to release refund, Federal Board of Revenue, government alters Reduced Rate Regime, high cost of doing business, high cost of finance, impose sales tax, labour wages, on all inputs and utilities, textile industry of Pakistan

Chairman All Pakistan Textile Mills Association (APTMA) S M Tanveer expressing concern over the critical situation the textile industry of Pakistan is going through due to high cost of doing business, energy constraints, high cost of finance and labour wages as against the regional competitors. Moreover, if the government alters the Reduced Rate Regime (RRR), fails to release stuck up refunds and does not ensure liquidity supply from banks to the textile industry immediately, it may end up with 50% closure of the textile industry.

Related Keywords: cash crunch, drawback on local taxes and levies, Federal Board of Revenue, Pakistan textile industry, Pakistan value-added textile sector, payable to exporters, PRGMEA, sales taxes, textile export

Pakistan value-added textile sector hamstrung by cash crunch as more than Rs 205 billion refunds has been stuck up with the government. Federal Board of Revenue (FBR) still withholds more than Rs 13 billion under Drawback on Local Taxes and Levies (DLTL) claims and about Rs 17 billion sales taxes under refund claims, causing immense problems to the textile industry, according to Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).