Govt may not refund sales tax to exporter: Textile exporters fear

KARACHI: Textile Exporters have expressed concerns that the government would not be in a position to refund 17 percent sales tax to exporters during the fiscal year 2020-21.

Hence, the textile exporters are deliberating whether to operate industries or close down. Textile Exporters are facing extreme unrest and anxiety as the government has shut eyes over the common demand of 55 chambers, 26 associations of five export sectors – textile, leather, carpet, sports good, and surgical of Pakistan for the restoration of zero-rating on sales tax.

The Government has unnoticed the major demands and recommendations of the export sectors of Pakistan which were proposed by the several chambers and associations of the country which is really most surprising and unreasonable.

As per the past practice, the government has sought budget proposals from the chambers & trade associations however the trade organization were neither consulted for budget discussion meeting nor their proposals major proposals incorporated in the budget.

Surprisingly, the government and its economic team have also, the first time in the history of Pakistan, ignoring the strong recommendations of Standing Committees of Senate and National Assembly which also proposed to provide relief to the export industries. 

The textile export sector which is the backbone of the economy and exports, most labor-intensive sector, also provides huge urban employment to the female workers and particularly to the lower class in the garment units and highest foreign exchange earner is beyond the understanding.

The textile industry supports more than 40 allied industries including the businesses of big markets like Jodia Bazar all over Pakistan. The downfall of the textile export industry means the downfall of 60 percent of national exports, closure of allied industries and big markets and commercial centers, and tsunami of unemployment.