Karachi: Textile exporters recently requested the federal government to restore zero-rated sales tax regime for the five export-oriented sectors — textile, carpet, leather, sports and surgical goods — in the budget for 2020-21, a news source reported.
As per the publication, the government had removed the zero-rated tax regime for these sectors in the budget for 2019-20. Instead a refundable 17% sales tax had been imposed. Considering the impact of the coronavirus situation, the sectors are petitioning for a zero-rated tax regime once again.
In addition, the textile sector also called for exclusive treatment through the de-merger of textile from the Ministry of Commerce. They proposed that the sales tax on power and gas supply to their businesses should also be abolished. Additionally, the representatives of the sector called on the government to abolish taxes and duties on purchase of local raw material.
