The strike of Sizing Industries Factories has entered into second week, here Thursday, to protest against the implementation of 40-B & 38A of Sales tax and imposition of 17 percent sales tax on starch used by sizing of yarn in sizing factories. Sizing factory owners had also taken out processions from their factories with black flags and reached Clock Tower, where a protest camp had been established.
Shakil Ansari Chairman All Pakistan Textile Sizing Industries Association announced that if demands are not accepted, Factory owners would start march towards Islamabad after Eid ul Azha. Talking to newsmen, explained that sizing factories are actually cottage industry, which are providing services at a very low profit margin to Power loom sector and Weaving units as well as export houses. Sizing units are not in a position to give additional sales taxes like dying, printing and processing units. Sizing factories not involved in sales & purchase of yarn, but working only at services charges. Hence, Sizing units are unable to continue this business in the presence of 40-B & 38A of sales tax act, with holding tax on banking transitions, and 17 percent sales tax on starch.
He mentioned that government has already imposed 17 percent sales tax on starch used by sizing units which has eroded their profitability. He said that section 283 of sales tax is also haunting the sizing units. We have many meetings with FBR on this issue but still the matter is lying unresolved, he added.
He was also critical of withholding tax on bank transactions and said that sizing units are major victim of this law. Our collections have been reduced to nil and we have been pushed to wall. He also criticised the environment department and said that govt has deprived them of clean fuel of gas and when we use other fuel, the environment department come to take us to task. Under these circumstances we cannot run our units and hence we have unanimously decided to continue the strike for indefinite period. If demands not accepted, industry owner will observe long march to Islamabad and further line of action will be announced just after Eid holidays. On this occasion, newly elected President FCCI, Choudhry Nawaz, Waheed Khaliq Ramay, Senior Vice Chairman Haji Talib Hussain, Vice Chairman Mian Zahid Rasheed and General Secretary Mian Muhammad Ajmal were also present.