LAHORE: Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) hailed the Federal Board of Revenue (FBR) on Monday for notifying zero-rating facility for five major export-oriented sectors including value-added textile sector.
Talking to the media here, PRGMEA Chief Coordinator Ijaz Khokhar said that they have welcomed the government’s initiative of zero-rated sales tax regime to facilitate export-oriented industry, as this step would go a long way in promoting country’s exports, put the economy back on rails and boost the trust of local and foreign businessmen.
Khokhar said that this new sales tax regime for value-added textile sector would certainly bring down the industrial cost of doing business and Pakistani products would be able to get their due share in the international market.
He added that this initiative of the government would encourage the business people to supplement the government endeavours aimed at the economic revival of the country. He said that this tax regime for export-oriented industry would not only give a jumpstart to the national exports but would also expand the industrial sector and generate employment opportunities for the natives.
The chief coordinator also said that the reintroduction of zero-rating or no-tax and no-refund regime for the apparel sector, which was the major export-oriented sector and contributed more than 50 per cent of foreign exchange earnings, was a positive step towards the restoration of viability of garment industry.
He also appreciated the reduction in export refinance rate by 0.5 per cent and said that the government should also announce a comprehensive package for the industry as its exports were under pressure both in quantitative and value terms. Khokhar urged the government to liquidate the pending sales tax refunds by the end of current month.
APP
