Aptma qualms 50pc closure of textile industry if any change in RRR

Chairman All Pakistan Textile Mills Association (APTMA) S M Tanveer expressing concern over the critical situation the textile industry of Pakistan is going through due to high cost of doing business, energy constraints, high cost of finance and labour wages as against the regional competitors. Moreover, if the government alters the Reduced Rate Regime (RRR), fails to release stuck up refunds and does not ensure liquidity supply from banks to the textile industry immediately, it may end up with 50% closure of the textile industry.

Chairman APTMA said that 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 immense loss due to the constraints beyond its control.

Tanveer further said that 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. In case minor inputs and utilities are added to this levy, then the refunds figure may even move up further.

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