KIEA hails expansion of zero-rating compass

Chairman, Khurrianwala Industrial Estate Association (KIEA) Azhar Majeed Sheikh hailing the expansion of zero-rating compass to cover vast range of inputs and raw material supplies. He also appreciated the efforts of Finance Minister, Abdul Hafeez Sheikh and Chairman Federal, Board of Revenue Salman Siddique, in defusing a complex situation amicably and satisfactorily.
Talking to newsmen on Monday, Sheikh said that being a stakeholder, he was totally involved from beginning to the end of parleys and negotiations at every stage and apprised the authorities of the practical difficulties and expected hurdles in the smooth functioning of zero rating regime. He was happy to report that the deciding authorities showed practical and pragmatic approach to the problems and were very helpful to iron out the hassles of sales tax.
Sheikh appreciated keeping out the sizing industry and cloth manufacturers supplying goods to exporters from sales tax. This would ensure smooth supply chain to exporters, he said. He was happy to note that the benefit of notification shall be available to registered importers, traders, manufacturers and exporters and also to man-made and synthetic fiber manufacturers, which would ensure smooth and cheap supply raw materials to the exporters, he said.
The chairman KIEA said the previous tax regime had certain flaws like at least Rs 520 billion of textile sectors are stuck with FBR and textile millers are forced to file sales tax return for sales refund. The process was considerably time consuming but now the millers are given an attractive alternative under the new regime. He stressed that the entire textile sector chain including ginning, spinning, weaving and processors will have an opportunity to benefit from the new regime.
However, all these units should be registered and units selling products to unregistered units would have to pay tax either when they manufacture for local consumption or export the items. Sheikh hoped that new sales tax regime would not only facilitate the exporters but also the industry and its supply chain and help maintain the growth tempo of the national exports.