The Federal Board of Revenue (FBR) has opposed the proposal to restore the zero-rating system in the textile sector or introduce lower sales tax rates in five export sectors.
According to media reports, exporters have approached the Prime Minister and various parliamentary committees with a proposal to restore the sales tax zero rating system in the budget (2020-21). The industry’s alternative proposal is to reduce the sales tax rate in five export sectors from 17% to 5%. However, the FBR has taken a principled stand on the government’s non-withdrawal of sales tax from export sectors. The FBR said we can only propose to policy makers and the final decision will be taken by the government. Previously, Ministry of Industry and Production informed the exporters that the government would consider restoring the zero rating system in the next budget.
Shabbar Zaidi opposed restoring Pakistan’s export sector to zero rating | ALSO READ
The private sector opined that the imposition of 17% sales tax has had a devastating effect on the textile industry and its exports. The government should review and restore the situation. Zero-rated government for the five largest export sectors.
On January 6, 2021, the former chairman of the FBR Mr Shabbar Zaidi tweeted, “Zero rating for the export sector. I fought and won to break the zero rating for the export sector. It would be regressive to reverse it.” If this is done then we should forget about it. Any tax system in Pakistan. Improve the refund system. In this age of technology, it will be unnecessary.
Shabbar Zaidi | Former Chairman FBR |
FBR established Export Oriented Sectors Registration Cell
| ALSO READ
Source | Zero Rated Sector | Textile Sector | FBR | Federal Board of Revenue | Shabbar Zaidi |
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