Karachi, July 12, 2019: Yousuf Yaqoob, Chairman, Pakistan Weaving Mills Association (PWMA) has criticized the imposition of 17 percent sales tax on domestic weaving industry.
According to PWMA Chairman, the imports of yarn without payment of sales tax by the export-oriented units (EOUs) through Indemnity Bonds and DTRE for exports will jeopardize the existence of indirect exporters of the weaving industry.
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He stated that the policy of import of yarn without sales tax by the EOUs would badly affect the indirect exporters of local weaving industry because no EOU would buy the raw material from local suppliers and indirect exporters on payment of 17 percent sales tax and to get its refund afterwards through a cumbersome process.
Terming the imposition of 17 percent sales tax as the final nail in the coffin of the domestic weaving industry, PWMA Chairman said that the MOUs will buy the imported yarn with zero duty rather buying from the local SMEs and suppliers.
He, therefore, urged the government to subject all the local and imported input goods with the same rate of sales tax in order to prevent the local weaving industry from devastation and ultimate closure.