LAHORE: The Federal Board of Revenue’s (FBR) push for digital monitoring cameras inside textile factories has triggered a standoff with mill owners, raising fears of closures across Pakistan’s textile sector, industry sources said.
According to details, the dispute between FBR and textile mill owners over installation of security and monitoring cameras to curb tax evasion inside factories has intensified. FBR directed mill owners to install the cameras at their own expense to prevent tax theft.
Sources in the All Pakistan Textile Mills Association said mill owners have refused to bear the additional cost running into millions of rupees. APTMA sources said industrialists cannot afford the expense under current economic conditions and warned that factories will be shut down completely if FBR enforces the order.
Mill owners criticized FBR’s decision, saying Safe City cameras are installed on roads for challans but the cost is not borne by vehicle users. They argued that if FBR wants monitoring for its own facilitation, it should install the cameras from its own budget.
APTMA sources added that the total number of textile mills in the country has shrunk to just 180. They said if the government wants to stop tax evasion and increase revenue, it should include more than 1,200 ginning and spinning mills in the monitoring net instead of targeting only textile mills, as that sector can generate much higher tax for the government.
Industrialists warned that the standoff could cause serious damage to national exports if the issue is not resolved.
