Time to forget zero-rating, Imran tells textile industry

Prime Minister Imran Khan on Thursday in a meeting with the leaders of the textile industry told them that the ship on zero rating regime for the textile sector had sailed.

The government has withdrawn the zero-rated regime for five sectors — textile, leather, carpets, sports and surgical goods — and imposed a standard sales tax rate of 17pc on all items.

The said industry's have been up in arms over the change, however they have been informed point blank by the Prime Minister that while the government was willing to take up the legitimate concerns of the industry, but that they mus move beyond the question of zero rating.

The Federal Board of Revenue (FBR) has said that the withdrawal of the zero rating regime from these five industries could possibly fetch up to an additional Rs 75 billion in government revenues.

The premier, he said, informed the delegation that his government was willing to resolve all issues of the industry arising in the post-zero rating regime, but the scheme would not be revived now.

The prime minister stressed the need for effective collaboration between the government and business community to overcome the current economic problems. Mr Khan said promotion of business activities and the manufacturing sector was top priority of his government.