ByThe All Pakistan Textile Mills Association (APTMA) has strongly criticized the government’s recent tax policies, which it claims are leading to the closure of textile factories and widespread unemployment.
Key Concerns:
- SRO350(1)/2024: The association has expressed deep concerns over the impact of this SRO, which has created operational challenges for the textile industry.
- Sales Tax Exemption Withdrawal: The withdrawal of sales tax exemption on local supplies for export manufacturing has further exacerbated the difficulties faced by textile manufacturers.
- FBR’s Approach: The APTMA has accused the Federal Board of Revenue (FBR) of adopting a dysfunctional approach that is detrimental to the industry.
Impact on the Industry:
- Factory Closures: The regressive tax policies have led to the closure of several textile factories.
- Unemployment: The closure of factories has resulted in significant job losses.
- Economic Stability: The textile industry’s decline has negatively impacted Pakistan’s external sector stability and overall economy.
APTMA’s Demands:
- Amendment of SRO350(1)/2024: The APTMA has urged the government to amend SRO350(1)/2024 to address the operational challenges faced by textile manufacturers.
- Restoration of Sales Tax Exemption: The association has called for the reinstatement of the zero-rating on local supplies for export manufacturing.
- Avoid Collective Punishment: The APTMA has emphasized the need for stronger checks and balances to prevent misuse of tax exemptions, rather than resorting to collective punishment that harms the entire industry.
Conclusion:
The textile industry plays a crucial role in Pakistan’s economy, and its survival is essential for the country’s economic stability. The APTMA’s plea for the government to reconsider its tax policies highlights the urgent need for measures to support the industry and prevent further decline.
