ISLAMABAD: All Pakistan Textile Mills Association (APTMA) has urged the government to do away with regressive taxation policies as these are causing permanent closure of factories and massive unemployment.
On Friday, the Association in a statement said that textile sector is gravely concerned over the impact of SRO350(I)/2024 and recent withdrawal of the sales tax exemption on local supplies for export manufacturing on the textile sector. These regressive moves are crippling the industry with devastating consequences for employment, external sector stability and the overall economy.
Commenting on SRO 350(1) 2024, APTMA has stated that despite repeated pleas from industrial stakeholders, clear commitments from the finance minister that SRO 350(I)/2024 will be amended, and categorical instructions from the Prime Minister to suspend the SRO till it is made workable for all stakeholders involved, the FBR continues to enforce the dysfunctional policy to the detriment of all manufacturers in Pakistan. The textile sector, a vital pillar of Pakistan’s economy, is being severely undermined by the current provisions of SRO 350, leading to widespread disruptions across the sector.
APTMA is of the view that the operational challenges posed by SRO 350 have exacerbated the difficulties already faced by the industry, adding that due to the requirement of linking the entire supply chain to file sales tax returns, several APTMA members and other firms across the country are unable to file their returns within stipulated deadlines since their upstream suppliers have not filed their returns and the FBR has also eliminated the option of delinking of invoices from the return.
APTMA has called on the government to restore the zero-rating on local supplies urgently for export manufacturing under the Export Facilitation Scheme with stronger checks and balances to prevent misuse, rather than resorting to collective punishment that further accelerates the deindustrialization trend that has devastated Pakistan’s economy over the past two years.
