Operation of textile processing mills remained suspended on the second day as their clients are not placing orders at new higher rates, after the imposition of 17 to 20 percent sales tax in the federal budget. A meeting of All Pakistan Textile Processing Mills Association (APTPMA) was held at the SITE office Tuesday wherein it was decided to convene a joint meeting of all the stakeholders to discuss the sales tax registration and payment issue.
The federal government has imposed 17 percent sales tax on filer and 20 percent on non-filer clients of processing mills. With the imposition of sales tax the cost of processing mills has increased by some 40 percent. Arif Lakhani, Regional Chairman, APTPMA said all the processing mills remained closed across the country on Tuesday as customers are reluctant to pay 17 percent sales tax on processing of cloths. "We have asked all the mills to send an official "closure of mill" letter to the Federal Board of Revenue (FBR), KE, SSGC and other institutions for their record," he added.
He said the operation stays suspended and media can visit any processing mill to observe the situation. In addition, it has been decided that wholesalers and customers of processing industry will be invited today (Wednesday) at the association office to convince them for registration and payment of sales tax, he added. During the meeting, members and processing industry urged Prime Minister Imran Khan to review the decision of abolition of zero rated status for five leading export sectors and end the ongoing uncertainty in these sectors.
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