According to an article in The Express Tribune, the garments industry in Pakistan is requesting an end to audit notices and instead, timely release of sales tax refunds from the Federal Board of Revenue (FBR).
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) stated that the FBR should focus on strengthening the industry and exporters rather than creating problems for them.
The PRGMEA also highlighted that tax revenue collected from the manufacturing sector, which contributes 13% of the gross domestic product (GDP), accounted for more than 51% of total tax revenue. On the other hand, the agricultural sector, which contributes over 26% of GDP, is only paying 2% of income tax.
The association urged for an expansion of the tax base to include the agricultural sector and called for solutions to ease the liquidity crunch, lower production costs, and create a consistent energy tariff policy. The PRGMEA also expressed concern over the removal of competitive power tariffs and its impact on textile exports.
To read the full article visit www.tribune.com.pk
