government has abolished sales tax zero-rating regime in the
federal budget 2019-20 for five export-oriented sectors i.e.
textile, leather, carpets, sports goods and surgical goods and
imposed 17% sales tax on items covered under SRO 1125(I)/2011.
Minister Imran Khan in a meeting with the leaders of the textile
industry told them the government has withdrawn the zero-rated
regime for five sectors and imposed a standard sales tax rate of
17% on all items.
PHMA has rejected 17% sales tax on the export industry in the
federal budget 2019-20, expressing serious concern over the
withdrawal of zero-rated facility for the five key exports
to ongoing trade tensions between the US and China, Pakistan’s
textile industry is getting a huge amount of import queries from
textile organization will visit Pakistan to provide technical
expertise in the textile sector, Abdul Razak Dawood says a free
trade agreement has been signed with China in this regards.
Chairman Syed Ali Ahsan has apprehended that the proposal of
withdrawal of zero-rating regimes would have an adverse impact
on the country’s exports production and investments.
textiles exports of Pakistan during July-April (2018-19) were
recorded at $11.419 billion against the export of $11.176
billion during July-April (2017-18), showing an increase of 2.17
five-year textile policy has failed to achieve its targets
including doubling value addition from $ 1 billion per million
cotton bales to $ 2 billion per million cotton bales as well as
creating the jobs in the sector and increasing the textile