Reimposition of ST on textile auxiliaries flayed

OUR STAFF REPORTER KARACHI - The value-added textile sector has sharply reacted and protested over the betrayal of the government from its commitment and reverting back to impose sales tax on textile auxiliaries. The government vide its SRO No.283(I)/2011 dated 1st April, 2011 has very recently given exemption in sales tax to textile auxiliaries making it zero-rated of the items, which are used generally in textile sector such as caustic soda, soda ash, sodium silicate, (others), tallow, urea active, zinc chloride. The decision of the government declaring zero rated to textile sector was widely welcomed by the textile industry but within a month government has withdrawn its previous Circular and issued a fresh SRO No.323(I)/2011 dated 27th April, 2011 through which all auxiliaries which are used in textile sector have been made liable to pay sales tax. The fresh announcement of the government will add miseries of the textile sector which is already in immense problems like high cost of doing business, high mark up rates, blockade of billion of rupees of textile sector in Sales Tax, Customs and State Bank of Pakistan. Towel Manufacturers Association of Pakistan (TMA) Chairman Syed Usman Ali has demanded of the government to immediately withdraw this SRO and stop practice of issuing one SRO and replacing it with another. He said that the frequent changes in SROs would add further miseries to the textile sector. We also urge the government to let textile sector concentrate its attention in increasing countrys exports and fetching badly needed foreign exchange of the country which would turn our textile sector competitive in international markets, Usman added.

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