KARACHI: It seems the business community is losing faith in the government’s ability even to understand the country’s trade and economic system, as the value added textile sector have announced country wide protest demonstrations on June 15, 2019.
[the_ad id=”31605″]The value added textile export sector, the primary forex earner, has announced peaceful protest across the country against proposed withdrawal of zero rating scheme and rescinding SRO 1125, Muhammad Jawed Bilwani, Chief Coordinator, Value Added Textile Export Sector.
“To save the textile export sector, zero rated scheme of “No Payment No Refund” of Sales Tax must be continued”.
He criticized Advisor to PM on Finance, whom in his post budget press conference gave a misleading figures that the domestic annual sales of textile sector was Rs1200 billion. “As per our estimates, the domestic annual sale is only around Rs250 billion”.
Bilwani said the Value Added Export Sectors categorically refused to accept the PTI government’s proposed tax regime.
“No Payment No Refund is the only workable mechanism,” he said adding that if this facility is withdrawn as per government’s proposal, much of the exporters’ liquidity would remain stuck up as one shipment takes 4 months for completion.
He also conveyed serious apprehension on reduction in tax credit for investment in BMR from 10% to 5% of the purchase for the tax year 2019 and abolishing tax credit for investment in BMR from 2020, whic will discourage new investment. “However, Proprietorship & AOP are not provided Tax Credit on purchase of plant and machinery for BMR since its inception which is a clear discrimination”.
Muhammad Jawed Bilwani, Chief Coordinator, Five Zero Rated Export Sectors stated that Associations of Five Zero Rated Export Sectors including Council of All Pakistan Textile Associations, Pakistan Apparel Forum, Pakistan Hosiery Manufacturers & Exporters Association, Pakistan Readymade Garment Manufacturers & Exporter Association, Towel Manufacturers Association of Pakistan, Pakistan Knitwear and Sweater Exporters Association, All Pakistan Textile Processing Mills Association, Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association, Pakistan Textile Exporters Association, Pakistan Bedwear Exporters Association, Pakistan Cloth Merchant Association, Pakistan Denim Manufacturers & Exporters Association, All Pakistan Textile Sizing Industry Association, All Pakistan Bedsheets & Upholstery Manufacturers Association, Pakistan Weaving Mills Association, All Pakistan Cotton Power Looms Association, Council of Loom Owners Association, Pakistan Leather Garments Manufacturers & Exporters Association, Pakistan Carpet Manufacturers & Exporters Association, Pakistan Tanners Association, Pakistan Sports Goods Manufacturers & Exporters Association, Surgical Instrument Manufacturers Association of Pakistan will hold protest demonstrations on Saturday 15 June 2019 across the country.
It may be mentioned here that FPCCI has also hinted peaceful protest.