Pakistan'S Textile And Clothing Sales Tax Rebounded

2011/4/2 13:33:00 62

Pakistan Textile And Clothing Sales Tax Raises Controversy

Pakistan

In early March, the government announced its plans for textiles and clothing.

Leatherwear

Levying general sales tax with carpet products has caused bounce back of Pakistan's textile industry.

The Federal Tax Commission of Pakistan said that the domestic sales of the above products will start to collect 17% of GST and increase the previous 1% SED to 2.5%.

In the past, Pakistan textile, leather and

Carpet

Domestic sales and export products are exempt from GST, because more than 80% of these products are exported.

The textile industry in Pakistan refused to levy GST and SED in March 16th, and called on the Pakistani government to cancel the levy immediately.

The chairman of the National Textile Industry Association Committee of Pakistan expressed surprise at the government's tax measures, because the textile industry of the Palestinian country was unable to pay such taxes due to soaring cotton and yarn prices, frequent natural gas shortages and power outages, and labour mobility.

The chairman of the garment manufacturers and Exporters Association of Pakistan told the media that the Pakistan textile industry had already faced problems of insufficient power supply, shortage of materials and high operating costs, and could not resist new taxes.