Chairman All Pakistan Textile Mills Association (APTMA) Gohar Ejaz on Monday lauded Chairman Federal Board of Revenue (FBR) for introducing new Sales Tax regime in order to facilitate the textile industry. Addressing a press conference here he termed the new Sales Tax law as a win-win situation for all the sectors in the textile value-added chain.
He said the Chairman FBR had created an environment conducive for business growth by understanding the industry's demand, acknowledging the weakness of tax collection machinery and amending the law accordingly. According to him, the Aptma has been fighting the industry case since November last and advocated ending of the refund system once and for all. He said that the Aptma presented the industry's case before standing committee of National Assembly, BFR, IMF and the World Bank to argue that the Value Added Tax (VAT) would not suit Pakistan.
He said bringing down the tax rate to 4 and 6 per cent from 17 to 20 per cent, amnesty for newcomers to the tax net, removal of tax on utilities on registered ones and a permanent end to the refund system are radical steps taken by the Chairman FBR. Gohar said the Aptma held more than 20 meetings to convince the government and advised the FBR that 20 per cent tax was not bearable for the consumers. The government agreed and amended the law accordingly, he said, adding that the matter is resolved and tax burden on public is now just 4 per cent.
He criticised Sui Northern Gas Pipelines Ltd for not supplying gas to the industry despite the advent of summer season. He said that the President's Committee on Gas Load Management is meeting on April 6 to ensure uninterrupted gas supply to industry during summer.
He said the SNGPL was denying uninterrupted gas supply to textile industry despite intervention from the highest office of the country. He said the latest notification from the SNGPL suggests that industry would be denied gas supply for 3 to 5 days a week, which is resulting into catastrophic impact on industry growth.
He said over 200 spinning mills in Punjab were altogether closed due to cut in gas supply and any further delay in gas supply may result in closure of 50 per cent of mills. This situation is likely to incur a loss of $2 billion in next 90 days in Punjab, he said, adding that the dream of fetchigng $4 billion exports in next four months would remain unfulfilled.