Restoration of zero-rating import of machinery: APTMA appreciates Chairman FBR

Chairman All Pakistan Textile Mills Association (APTMA) Gohar Ejaz has appreciated the Chairman Federal Board of Revenue (FBR) and the Ministry of Finance for restoration of zero rating import of machinery through SRO 727 dated 1st August 2011 and expressed the hope that it would attract fresh investment in the textile industry. Chairman APTMA said the positive attitude of the government in understanding the industry contentions on zero rating import of textile machinery is highly appreciable.
It would be a win-win situation for both the government and the industry, he added. It may be noted that the government had withdrawn sales tax exemption on imported machinery through SRO 230 dated 15 March 2011 on the concern that the commercial importers were misusing the facility. However, the APTMA took up the issue with relevant authority and argued that the withdrawal of sales tax exemption would merely be an exercise affecting liquidity of the investors with no revenue benefit to the exchequer.
The Chairman FBR, in agreement with the APTMA, directed the concerned authority to restore the zero rating import regime for textile machinery. APTMA Chairman expressed the hope that restoration of zero rating import of textile machinery would help industry in taking decisions of further investments.