The All Pakistan Textile Mills Association (APTMA) in its budget proposal for 2020-21 has asked the government to align tax rates with the other exporting countries of the world to reduce pressure on the textile industry during this period of COVID-19. The have also asked for the elimination of minimum turnover tax for this year and the upcoming 2 years.
Textile sector is also of the view that duty on polyester fiber should be reduced to zero and maintain cotton duty at zero per cent. Other demands of the APTMA are as follows; (i) LTFF for indirect exporters;(ii) make IRIS applicable on government institutions;(iii) exemption certificate to manufacturing concerns;(iv) rate of sales tax on ginned cotton is 10 percent it is therefore suggested that proper suggested that proper amendment should be made and allow the zero rating on purchases of ginned cotton;(v) sales tax suffered on services may be processed by ERS/STARR;(vi) sales tax on building material;(vii) proper amendment should be made in the law to allow input tax credit suffered on purchase of building material such as production hall, warehouses and factory premises which is directly /indirectly used in the taxable activity;(viii) textile spinning sector should be excluded from the purview of section 8B as has been done for other sector through SRO 647(I)/2007 dated 27 June 2007;(ix) deferred RPO’s should be processed side by side and ;(x) similar to income tax law, time bar limitation should also be provided under sales tax law for disposing of the case in light of the directions of higher appellate forums i.e. Commissioner – Appeals and Appellate Tribunal Inland Revenue [ATIR].