Sources told Business Recorder here on Monday that a delegation of textile exporters recently met Finance Minister Ishaq Dar, Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan and FBR team of budget markers at the Ministry of Finance. According to a participant, industry has strongly proposed that the SRO 1125 should be made part of the law to avoid frequent amendments in the said notification. Once the SRO 1125 becomes part of the Sales Tax Act 1990, it would not be frequently amended on the desires of the Federal Board of Revenue (FBR).
During the meeting, when one of the FBR officials hinted increase in sales tax rate on retail stage, textile representatives strongly contested that the rate of sales tax at retail stage under SRO No 1125 must be kept at existing 5 percent. It was assured that the same rate would continue in the next fiscal year. Industry agreed to provide lists of retailers operating within the supply chain for documentation purposes instead of increasing sales tax of 5 percent at retail stage.
It has also been agreed that the zero-rating regime would continue in future without any major changes or modifications, they said. On the issue of packing material, it was categorically conveyed to the textile sector that refund of packing material would not be admissible under SRO NO 1125. Due to some technical issue, the computerised system of Pakistan Revenue Automation Limited (PRAL) was accepting the refunds on packing materials. Textile industry also strongly proposed separate utility tariffs for export sectors like other industries. Exporters also raised the issue of transporters' strike which affected the exports of zero-rated sectors as well, sources said.
Copyright Business Recorder, 2017