APBUMA rejects tax on textile industry

MULTAN: All Pakistan Bed sheets and Upholstery Manufacturers Association (APBUMA) Wednesday rejected proposed sales taxes on textile industry in budget 2019-20.Talking to reporters APBUMA chairman Syed Muhammad Asim Shah said proposals made in the budget 2019-20 to end zero-rating regime would be counterproductive and would have a negative impact on our industrial growth, export target, revenue generation, employment and ultimately widen our trade deficit.He said that with the imposition of 17pc sales tax on enter value chain of export oriented industry would result in sharp decline in our exports. He said end of zero rated regime posed a great threat to our economic stability and urgently needed to be revisited with our proposals.Aasim said export-oriented sector was already facing liquidity crunch and skimming further taxes in the form of 17 percent sales tax would aggravate the situation. He was of the view that a vicious circle of sales tax collection and refund would leave the export sector vulnerable to corruption by tax authorities.He said suggested mechanism of refund proposed through commercial banks after 60 days of GD as promised would cause billions of rupees of exporter’s working capital stuck with the government as our previous experience this time line would escalate with the passage of time and still pending claims of whopping Rs 300 billion is proof of this. He suggested promoting a business friendly culture; the government should revisit its approach and denounce the proposal to levy sales tax before final approval of budget.He said it would be very unfortunate that export oriented sector out of options and cornered would be left with no choice but to come on roads. He argued that millions of worker would lose their jobs to this misadventure that will start agitation on the roads creating law and order condition.The PTI-led governments instance on countering corruption and money laundering and developing a business friendly culture to encourage investment in the country. But unfortunately, but proposals made in the budget are contrary to manifesto of the PTI for, which it has been provide mandate to government. The APBUMA has appealed to the Prime Minister to take notice of situation bearing harmful consequences for the country.

from The News International - National http://bit.ly/2R8FPA2