LAHORE
Chairman All Pakistan Textile Mills Association (APTMA) S M Tanveer has feared 50% closure of the textile industry in case the government alters the Reduced Rate Regime, fails to release stuck up refunds and ensures liquidity supply from banks to the textile industry immediately.
He said the textile industry in Pakistan is facing a crisis like situation due to the highest cost of doing business oozing out of the energy constraints, high cost of finance and labour wages as against the regional competitors.
Chairman APTMA said refund claims worth Rs100 billion of across the board textile industry have been stuck up with the Federal Board of Revenue with no clue as when these would be released. It has choked the textile industry and causing colossal losses due to the constraints beyond its control, he added.
Tanveer further said rumors are circulating fast that the government is mulling over imposition of 5% sales tax on all inputs and utilities across the value chain under the Reduced Rate Regime.
A rough estimate suggests that it may lead to stuck up of further refunds worth Rs250 billion on major inputs. This figure may even move up further in case minor inputs and utilities are added to this levy.