Zero-rated status sought for textiles

KARACHI: Pakistan Hosiery Manufacturers Association (PHMA) has asked the finance ministry to register all textile export oriented industry as zero-rated for the purpose of utility bills, an industry official said on Saturday.

“Many small and medium export oriented industries are not registered as zero rated industries in utilities bills due to cumbersome procedure of FBR and they pay Sales Tax and then apply for Sales Tax refunds,” Jawaid Bilwani, President PHMA, said in a statement.

He said recently, the government revised its gas allocation and management policy, whereby the priority of allocation of system gas has been revised and the five zero-rated sectors had been categorised as second priority.

“Since the FBR Portal contains the detailed information of exporters like their NTN, STRN etc. and is refunding the sales tax in such cases to the zero-rated export industries.” Bilwani said it meant the export industries were unlikely to get the refund.