The federal government in its maiden budget has withdrawn
zero-rating facility for goods supplied within the country.
Lahore -- The withdrawal of
zero-rating facility has created a fear among the value-added textile exporters that their refunds would start getting stuck from the current month, as the government has not put up an efficient system of refund payments in place.
Lahore -- Pakistan Hosiery Manufactures and Exporters Association has said that the withdrawal of
zero-rating facility has created a fear among the value-added textile exporters that their refunds would start getting stuck from the current month, as the government has not put up an efficient system of refund payments in place.
LAHORE -- The Lahore Chamber of Commerce and Industry (LCCI) on Tuesday urged the government to either restore
zero-rating regime for five export industries or suspend the operation of its decision till an effective mechanism for refund of export tax claims was put in place.
Expressing his aggravation, five zero-rated export sectors Chief Coordinator Muhammad Jawed Bilwani said the
zero-rating facility is offered in every country and technically the government cannot abolish the regime.
The
zero-rating created a loophole and the benefit was being availed by unintended beneficiaries and non-exporters,' said Minister of State for Revenue Hammad Azhar while presenting the budget for 2019-20.
Although the abolition of the
zero-rating regime also affects four other industries -surgical instruments, sports goods, carpets and leather goods, the government has so far discussed the issue and solutions with the textile industry alone.
The industry representatives rightly fear that abolition of
zero-rating would lead to postponement of investment plans for capacity expansion in value-added downstream industry, wipe out small and medium exporters and lead to factory closures.
THE number of restaurants and takeaways in Birmingham with a
zero-rating for hygiene has risen, new figures reveal.
The VAT
zero-rating will also benefit the exporter's supplier of raw materials and packaging supplies when they apply for the said claim with the BIR.
The Federal Board of Revenue (FBR) has stopped sales tax
zero-rating allowed on electricity to two textile units for misusing the facility.
FCC Regulatory Powers as It Pertains to
Zero-Rating 333