ISLAMABAD: The facilitation and appropriate taxation measures could play instrumental role in enhancing the competitiveness of textile business and to boost exports in this crucial sector of the economy, said a press release issued on Tuesday.
The experts from public and private sector said this, while sharing their views with the participants at consultative dialogue "Textile sector's competitiveness amid Covid-19" organised by the Sustainable Development Policy Institute (SDPI), here on Tuesday.
The World Banks's Programme Lead for Growth, Finance, and Institutions, Clelia Rontoyanni, while highlighting various aspects of support competitiveness in textile businesses, said that FBR had the potential to support exporters in these difficult times.
During the recent past, she said, several new measures had been introduced by the FBR including reduction in the GST rates, customs duties and ease in filing tax returns that may help in improved cash flows of exporters.
"Tax authorities need to realise that two-third of imports are inputs for the manufacturing sector, and therefore tariffs on inputs should be lowered" Rontoyanni said, and added further that tax system should be predictable and responsive to the needs of the private sector.
Muhammed Raza Baqir, former member, Federal Board of Revenue (FBR), while sharing his observations with the participants, said the textile sector was transitioning towards value-added items.
He said that Covid-19 had adversely impacted textile sector, hence, measures should be taken to facilitate the sector to overcome this unprecedented situation.
Likewise, he said, the utilisation period of export schemes could be extended until June 2021 in view of Covid-19.
He said that rules of the FBR export schemes such as DTRE were introduced almost two decades back. And hence, there is a need for complete revision. Former Member FBR Raana Ahmed, on the occasion, suggested that in view of the Covid-19, the FBR could consider relaxing burden of direct taxes on the textile sector.
She said the current tax policy formulation process is weak and capacity for in-depth research in FBR seems lacking. The fiscal policy unit at the Finance Division needs to be well capacitated and empowered.
This unit should collaborate with policy think tanks. Executive Director; Secretary General of APTMA, Shahid Sattar, was of view that the automation measures at the FBR were yet to provide any ease to the exporters. Moreover, the issues pertaining to irrational pre-conditions to claim refunds should be resolved.-PR
Copyright Business Recorder, 2020