ISLAMABAD: The country's textile industry has urged the government to adopt corrective measures for improving cash liquidity and to make textile industry competitive.

All Pakistan Textile Mills Association (APTMA) held a meeting with the top brass of Finance Ministry, suggesting restoration of zero rating and reinstating SRO 1125 or introduce lower rate of 5 percent.

Textile industry has also sought the following incentives in the federal budget ;(i) tax free procurement and movement of raw materials and intermediary goods from one registered person to another in the whole value-added chain may be allowed subject to ultimate export of goods.

For this purpose, draft rules prepared by APTMA have been shared with Ministry of Commerce and FBR;(ii) Sales Tax refund may be linked with purchases and not actual consumption which entails heavy financial cost as 80 percent of the refund amount claimed in Sales Tax Return may be paid provisionally within 48 hours of filing return to the corporate units against a revolving bond even before filing of Annexure-H, by amending Rule 39F of Sales Tax Rules, 2006;(iii) remaining 20 percent of the claimed refund amount may be retained till filing and processing of Annexure-H;(iv) legal lacuna and systematic snags like section 8B, additional tax may be removed;(v) and Annexure-H may be simplified requiring only two digits Customs chapter heading and made user friendly in consultation with APTMA with specific reasons for deferment or rejection be intimated to claimant.

Copyright Business Recorder, 2020