KARACHI: Disappointed with the government’s promise of issuing sales tax refunds within 72 hours, the All Pakistan Textile Mills Association (APTMA) has demanded to restore the zero-rated regime and reinforce SRO 1125(I)/2011.
Addressing a press conference on Thursday, Chairman APTMA Dr. Amanullah said the government had withdrawn the sales tax zero-rating and imposed 17 percent sales tax on raw material imports promising the tax so collected would be refunded to the exporters within 72 hours through FASTER module.
“It’s been four months and refunds, which now have accumulated to Rs87 billion, were not issued causing severe liquidity crunch for the industry,” Amanullah said adding, “This system has failed, therefore zero rating regime needs to be restored and SRO 1125(I)/2011 must be reinforced.”
He said the government had also promised to encash Rs30 billion worth of bonds issued against sales tax refunds, and the exporters would be paid on November 20, 2019. “But, this doesn’t solve our problem as these are the old refunds. Unless the new refunds are issued, industry would not be able to operate.”
The APTMA office bearers also demanded of the government to immediately remove the import duties on cotton, as the local crop had been largely damaged leaving a supply gap of 6.0 million bales.
All Pakistan Textile Mills Association (APTMA) is the premier national trade association of the textile spinning, weaving, and composite mills representing the organized sector in Pakistan. APTMA emerges as the largest association of the country as it represents 396 textile mills out of which 315 are spinning, 44 weaving and 37 composite units.